Pollution Due To Urbanization

Global Financial Crisis

The global financial crisis (GFC) is one of the terrible situations, which has been facing by many countries all over the world. A financial crisis occurs when the value of assets is severely disrupted and their accessibility becomes quite difficult in order to fund or to retain client's trust and thus provides harm to the sustainability of the financial system. The GFC has been an unfortunate part of the industry since long time, but it started indicating its real signs in between 2007 to 2008. In between this period, the drastic fall in worldwide stock markets has been observed, and many financial markets were collapsed. During this period, the US and European banking sectors faced excessive damages. Due to the occurrence of significant losses such as sharp fall in stock prices, the crisis in period 2007-2008 is considered as the worst financial crisis since the great depression of 1929. The financial crisis is usually accepted to have started in July 2007 when the liquidity crisis happened due to the lack of confidence of the US investors in the sub-prime mortgages' value. In consequence, the US Bank had to invest a large sum of capital into financial markets. In 2008, the situation had worsened as global stock markets crashed and turned out to be highly volatile.
The housing market in the US endured incredibly the number of homeowners who had taken out sub-prime mortgages discovered they were not able to meet their mortgage repayments. As the worth of homes dropped, the borrowers ended up with negative equity value. With a substantial number of borrowers defaulting on mortgages, banks were confronted with a circumstance where the repossessed homes were worth less on the today′s financial market as compared to the bank had loaned out initially. The banks undergone into a liquidity crisis, and giving and acquiring home mortgages turned into highly risky as the aftermath from the sub-prime mortgage bubble burst. The home loan originally started with the bursting of the U.S. housing bubble that started in 2001 and reached at high in 2005. In terms of economic, the housing bubble is a bubble, which takes place in local and global estate markets. The financial crisis can be ascribed to various aspects pervasive in both housing and credit markets. Some of the causes linked with the crisis incorporate the failure of householders to deal with their home loan installments and unsafe mortgage products. Other causes include increased strength of home loan originators, high individual, and corporate debt levels, and ineffective fiscal and housing strategies, the imbalance in trade, and improper regulation and reforms.