Money

Stories behind the Global Financial Crisis of 2008

The most recent economic and financial crisis started in 2007 and the financial crash happened worldwide in late 2008, after the U.S. sub-prime housing and real estate collapse, which led to subsequent banking crisis. The recovery has been very slow and it's still too early to look back and conculde that the crisis is over - it's not. We're still going through the longest recession since the Great Depression of 1929.

Years later it looks like those few sobering, non-mainstream economists and financial analysts were right at the time when they estimated that the effects of the 2008 Global Financial Crisis might last 10 years or longer. According to the most recent analysis in April 2013 by 400 economic analysts the global economy is still staganting. Eurozone is still having serious problems, while the US economy is showing signs of slight optimism. It seems that China is the only force proping up global economy at the moment, although it too is showing signs of slowing down. True economic revival seems to be still a long way off.

The real culprits that caused these economic problems, the banks and financial institutions, have of course tried to point the fingers of blame somewhere else. At the same time they filled their half-empty coffers with "free" taxpayers money, to cover for their greedy financial escapades.

Only now, in 2013, EU is finally set to put limits on banker's pay and cash bonuses. The City of London is opposed to those limits. It remains to be seen if this will happen and whether those pay curbs will bring desired results. Somehow, we have our doubts.

For example, in late October 2014, 25 of Europe's 130 top banks failed 'stress test'. These are now conducted regularly to determine if the banks are strong enough to withstand sudden pressures on the bank's finances, such as higher loan defaults, higher unemployment, or other unexpected economic problems that can 'test' the bank's ability to do normal business. Evidently, the crisis is still dragging its feet, or we could be facing another one!?

A 2011 film Margin Call (with Kevin Spacey, Jeremy Irons, Zachary Quinto, Demi Moore) highlights how the financial crisis started at a large Wall Street investment bank. It explores capitalism, greed and investment fraud. The New Yorker magazine called it 'the best Wall Street movie ever made'.

The Global Financial Crisis articles

These articles on money and investments shed some light on what was happening at the time, as governments tried to reign-in the effects of 2008 global financial crisis. The effects are still around us, in what has become a truly global economy, for better and worse.

Here are some of the stories that evolved at the time, as governments and financial markets scrambled about to try and "plug the holes", while giving an impression that they're fixing the problem. Time has shown us since that all they did is fix precious little, sweeping most of the problems "under the carpet", which is why the crisis and its consequences still linger on.

• Alan Greenspan's Housing Bubble
  
  History will show that Alan Greenspan played a key role in creating the US housing bubble.
• America's Oversized Deficits
  
  Investing in America's future is a tough sell, given oversized deficits certain to stay.
• April Job Losses the Lowest
  
  Although unemployment numbers are still raising, job losses in April are the lowest in 6 months.
• Bank of America Bonus Payments
  
  Questions raised about Merrill Lynch losses prior to its merger with BofA, at Bank of America bonus payments investigation.
• Bank Stress Test Results
  
  The U.S. Treasury Department bank stress test results to be released to the public.
• Banks Stress Tests Flawed
  
  Government Bank Stress Test is a flawed exercise that could only elevate the current economic stress.
• Bank Stress Tests Questions
  
  Validity of bank stress tests at Bank of America and Citigroup called into question.
• Banks Financial Trickery
  
  Banks financial trickery - up to their old tricks of puffing-up profits out of "toxic debt".
• Canadian Oil Companies
  
  Canadian oil companies offer you six ways to play attractive Canada's oil sector.
• Card Issuers Meet Obama
  
  Credit card issuers meet with President Obama about new card fees and interest rates limits.
• China Detroit's Lifeline
  
  Could China provide lifeline to Detroit - the U.S. auto industry?
• China Taiwan Investment Accords
  
  First investment accords in 60 years between Mainland China and Taiwan.
• China's Yuan Carry Trade
  
  The new yuan carry trade will add to China's global muscle and possibly accelerate the US recovery.
• Ciena Corp Recommendation
  
  Buy Ciena Corp on Nasdaq to profit from the global broadband arms race.
• Credit Default Swaps
  
  How credit default swaps, a derivative security, could reverse the economic recovery.
• Elliott Wave Disciple
  
  Robert Prechter - Elliott Wave disciple - sees a possible 2000 Dow Jones, as economy declines further.
• General Motors Savior
  
  How GM China, Shanghai GM, could be General Motors (GM) savior.
• How to Buy Banks
  
  Private equity firms have discovered how to buy banks and leave taxpayers with all the risks.
• India's Slow Growth
  
  Despite India's slow growth, it remains a good long-term profit play.
• Japan's Lost Decade
  
  Japan's Lost Decade appears to be replaying itself in the US now, following financial crisis.
• Long-Short Investing Strategies
  
  What are long-short investing strategies, newly popular in the current bearish markets?
• Money Morning Bank Stress Test
  
  Which are three strongest banks, according to Money Morning bank stress test.
• Oil Prices Could Jump
  
  Oil prices could jump as much as 70%, based on increased oil consumption vs declining oil production.
• Russia and China Energy Deals
  
  Will new Russia and China energy deals relegate America to spectator status?
• Russian Economic Model
  
  Does the Russian economic model have something to teach us?
• Small Caps Proven Profitability
  
  For a proven post-recession investing, small caps usually beat blue chips as safe investment.
• Solar Energy Comeback
  
  Is solar energy on its way back? USA, Australia and China are leading with their renewable energy plans.
• Sustained Economic Recovery
  
  Latest housing market and consumer confidence numbers may indicate a sustained economic recovery starting to happen.
• World's Reserve Currency
  
  Recently China has went as far as suggest that the world adopts a new international reserve currency, instead of the U.S. dollar.

While you're trying to get your hands on some money, it's also
important to understand the bigger picture - what goes on
in the world at large and how the "big players" play their game