World economy after 10 years of financial crisis

World economy after 10 years of financial crisis

 

12/8/2017 12:00 am

Global stock markets recovered from the collapse of the
capitals / agencies
10 years after the onset of the global financial crisis that hit the foundations of the financial systems in the world and was hit by an unprecedented collapse since the thirties of the last century.
The financial crisis that started in 2007 caused the bankruptcy of a large number of banks and companies in Europe and the United States, as millions of people lost their jobs, and the rate of global growth declined.
Ten years later, some sectors of the financial systems recovered and pre-crisis levels recovered as stock markets, while the crisis is still overshadowed by other indicators such as low interest rates and quantitative easing programs.
House prices were able to recover in the US, moving from an 18 percent drop in October 2008 year-on-year to a three-year high this year.
Credit facilities to banks for mortgage borrowers in developed economies in particular are the basis of the global financial crisis. The large rise in interest rates between 2004 and 2006, from 1 to 5.35 percent, has caused many defaults on banks.
Governments have intervened with bailout programs. President Barack Obama signed the $ 787 billion economic stimulus plan to create 3.5 million jobs, increase consumer spending and rebuild infrastructure.
The Fed also announced it would buy nearly $ 1.2 trillion of debt to help boost lending and economic recovery as part of a quantitative easing program.
The British government pumped money into bank capital and secured loans in hopes of resuming lending, and the total value of the government bailout was 387 billion pounds.

Stock markets
10 years after the global stock indexes managed to recover from the collapse that followed in the time of the crisis, where the Dow Jones index, compared to levels of March 2009 by 211.8 percent, and rose from the level of 7000 points, now surpassing the level of 22 thousand points.
In Japan, the stock market also suffered strong losses, with sharp fluctuations, with the Nikkei down 11 percent on some days and up 14 percent in other sessions.
Now the Nikkei is above the 20,000 mark, up 150 percent from the start of 2009.
For European stocks, Germany's DAX has lost more than 8,000 points in 9 years, now surpassing 12160 points.
The British FTSE is up about 80 percent since the crisis, while France's CAC rose 72 percent.
During the first three months of 2009, the UK unemployment rate rose to 7.1 percent at 2.22 million. In the United States, the unemployment rate rose at the end of 2008 to 7.2 percent, the highest level in 16 years, with more people losing their jobs than they lost in World War II.
Now the US unemployment rate has fallen to a 16-year low of 4.3 percent, while in Britain the unemployment rate has fallen by 4.8 percent.
In 2009, the growth rate of the world economy fell by 0.5 percent, but now the world is expected to achieve economic growth of 3.5 percent this year.
The International Monetary Fund said that while risks to global growth prospects appear to be broadly balanced in the near term, they still tend to be negative over the medium term.
The IMF believes that recovery can be stronger and more sustainable in Europe, where political risks are shrinking.
At the time of the crisis, central banks tended to cut interest rates, stimulate the economy and support investor lending. The United States gradually cut its key interest rate from a level of over 5 percent to a record low of zero to 0.25 percent.
While the Bank of England cut the interest rate at its lowest level throughout its history at 0.25 percent.
While the US Federal Reserve began raising rates again at the end of 2015, after 4 increases to 1% to 1.25% currently.
Despite a decade of global crisis, monetary policy in European banks is still continuing despite the US Federal Reserve's tendency to tighten, but interest rates remain within the ECB, Japan and Switzerland. At the time of the crisis, central banks tended to cut interest rates, stimulate the economy and support investor lending. The United States gradually cut its key interest rate from a level of over 5 percent to a record low of zero to 0.25 percent. While the Bank of England cut the interest rate at its lowest level throughout its history at 0.25 percent. While the US Federal Reserve began raising rates again at the end of 2015, after 4 increases to 1% to 1.25% currently. Despite a decade of global crisis, monetary policy in European banks is still continuing despite the US Federal Reserve's tendency to tighten, but interest rates remain within the ECB, Japan and Switzerland. At the time of the crisis, central banks tended to cut interest rates, stimulate the economy and support investor lending. The United States gradually cut its key interest rate from a level of over 5 percent to a record low of zero to 0.25 percent. While the Bank of England cut the interest rate at its lowest level throughout its history at 0.25 percent. While the US Federal Reserve began raising rates again at the end of 2015, after 4 increases to 1% to 1.25% currently. Despite a decade of global crisis, monetary policy in European banks is still continuing despite the US Federal Reserve's tendency to tighten, but interest rates remain within the ECB, Japan and Switzerland. While the US Federal Reserve began raising rates again at the end of 2015, after 4 increases to 1% to 1.25% currently. Despite a decade of global crisis, monetary policy in European banks is still continuing despite the US Federal Reserve's tendency to tighten, but interest rates remain within the ECB, Japan and Switzerland. While the US Federal Reserve began raising rates again at the end of 2015, after 4 increases to 1% to 1.25% currently. Despite a decade of global crisis, monetary policy in European banks is still continuing despite the US Federal Reserve's tendency to tighten, but interest rates remain within the ECB, Japan and Switzerland.

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