Journal of Management Research and Analysis
Official Publication of Innovative Education and Scientific Research Foundation
Official Publication of Innovative Education and Scientific Research Foundation
Print ISSN: 2394-2762
Online ISSN: 2394-2770
CODEN : JMRABX
Journal of Management Research and Analysis (JMRA) open access, peer-reviewed quarterly journal publishing since 2014 and is published under auspices of the Innovative Education and Scientific Research Foundation (IESRF), aim to uplift researchers, scholars, academicians, and professionals in all academic and scientific disciplines. IESRF is dedicated to the transfer of technology and research by publishing scientific journals, research content, providing professional’s membership, and conducting conferences, seminars, and award programs. With more...Null
Author Details :
Volume : 2, Issue : 2, Year : 2015
Article Page : 115-122
Abstract
A financial crisis of 2007-09 which started in advanced nation such as United States intersected with the freezing financial markets of the world economies and the suspended global trade, thereby transmuting into a global recession of intense gravity. The objective of this paper is to analysis the causes leading to such intense financial crisis which has hit the world at large. The leading indicators of financial crisis were securitization of mortgages, loose monetary policy stance adopted by the Federal Reserve, Basel norms which incentivized the investments in the mortgages, sovereign debt and GSE-sponsored mortgage backed securities more than the commercial and corporate loans, the rating agencies which awarded the lowest risk, high return ratings such as AAA to these assets, the inflationary pressure, substantial deregulation of the financial sector, bad computer modelling were the additional causes which helped in spreading the contagion of financial crises.
How to cite : Kalsie A, Arora A, MULTIDIMENSIONALITY OF US FINANCIAL CRISIS OF 2007-2009. J Manag Res Anal 2015;2(2):115-122
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