ISSN: 1817-5880

Author : AL-Battat, aad

Analyzing the Impacts of International Financial Crisis Reasons and Effects

Dr. Nadua Hilal Jawad; aad AL-Battat; Dr.Muntadhar Fadhil Sa

Gulf Economist, Volume 27, Issue 19, Pages 34-68

In the last year leading up to the present time, the world
experienced unusual mix of financial conditions. Expected
and realized volatility in both debt and equity markets were
remarkably low for most of the last half a decade. The
origins of the crisis lie in the complex interaction of number
of forces .Some were the product of market forces.
The problem was that, when house prices were rising,
many banks in us handed out risky loans to individuals who
could not afford them. The result was that many households
could no longer afford to repay their mortgages. Finally, the
lack of liquidity has had a wider impact and has brought
with it bankruptcies, job losses or recession.
Therefore, the researchers try to analyze the effects of
the financial crisis through the concept of it, what was the
origin of the crisis in the past, and how this new crisis began
If people lose confidence in the market, everything can go
horribly wrong