Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


The GFC Explained

No description

Cameron Williams

on 1 September 2016

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of The GFC Explained

1 - Sub-prime
The GFC Explained
By Cameron Williams
3 - Credit Crunch
2 - Liquidity

Sub-prime is a classification of borrowers with a tarnished or limited credit history.

Approximately 25% of mortgages are classified as sub-prime.
Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price.

Credit Crunch
A sudden reduction in the general availability of loans or credit

When, Why and Who
Timeline of the GFC
In 2008...
Jan 9 - World bank predicts slowdown of global economy

Jan - March - more than 850 US companies go into administration

Sept 14 - Lehman Brothers announce bankruptcy

In 2009...
Jan 12 - US President Bush requests for TARP funding to be spent

Feb 17 - US President Obama signs new legislation 'American Recovery and Reinvestment Act 2009'

March 11 - Freddie Mac announces a net loss of $50.1b for 2008

Why did the GFC happen?
Who caused the GFC?
2008 - US and UK governments struggle to rescue finance giants from bankruptcy

Credit Crunch
- decrease in consumer confidence

Sub - prime crisis
- home owners unable to pay mortgages

House price collapse

Alan Greenspan

- Chairman of Federal Reserve from 1987 - 2006
- Encouraged home owners to take out ARM's

Martin Feldstein

- Director of American International Group
- Was bailed out by US government for $180b
Outline of GFC
When was the GFC?
Why did it occur?
Who was responsible?
Current effects of GFC
Current effects of GFC

- GFC a global event
- World still recovering
- Financial markets cautious
- Central banks work together
Outline of GFC

- Major collapse of global economy
- Widespread effects still felt today
Full transcript