Monday, June 14, 2010
The Credit Crunch or the Great Recession is the most profound and significant economic event to affect global markets since the Great Depression of the 1930s. While the Great Recession was not a cause for the widespread poverty that marked the Great Depression, its impact significantly affected the wealthy. Literally billions of dollars were wiped off stock exchange boards. Victims of the Credit Crunch included the rich and famous and extended to leading investment banks on Wall Street, two of which collapsed.
- How did the sub-prime industry contribute to the Credit Crunch?
- What were the mechanics within the economy that contributed towards the Credit Crunch and which specific factors caused the housing bubble?
- Could the Credit Crunch have been avoided?
- Do the lessons of the Credit Crunch warrant increased regulation, as is the current trend?
- To what extent did the Federal Reserve contribute to the recession, if at all?
- What steps should Central Governments play in reducing the impact of a recession?
- What role should derivatives be allowed to play in financial markets?