Money and Investing

How the Global Financial Crisis of 2007 affected the real economy

Most recent financial crisis started in 2007, with the ensuing financial crash in late 2008, which affected most of the world's economy. The effects of this economic crisis are still felt in many countries, including the US and Europe.

Despite assurances to the contrary by the governments and so-called financial experts, the crisis is still not over and full recovery could be still years away. Even with the monitary policy of quantitative easing adopted by FED and other reserve banks (which basically involves printing huge amounts of paper or fiat money), more than 10 years later the things still haven't improved in the sense of creating a sound world economy.

In the current economic climate, the subject of money and investing is on everyone's lips and in everyday's news, more than ever.

The effects of the 2008 financial crisis are still felt

Many countries, including the US and EU countries, are still trying to shake off the effects of the 2008 financial crash. Even the world's manufacturing powerhouse, China, is experiencing slowing down annual growth of just above 7%. While many countries can only wish to have such growth levels, for China it's a serious slowdown after 3 decades of averaging annual growth of 10%. (It's yet to be seen what will be the effects of corona virus epidemic of 2020, not only on China, where it seems to have started, but also on the entire world economy.)

While banks and financial institutions tried to defend their practices that led to the current economic crisis, taxpayers are paying ever more money to those same culprits, to prop up their near-bankrupt balances.

As recently as in late October 2014, 25 of Europe's 130 top banks failed 'stress test'. These are undertaken to see if the banks can withstand a sudden economic adversity, such as rise in defaulted bank loans, high unemployment, or other financial problems that would decrease the bank's ability to do business.

Governments, who allowed the wild chase for profits to go unchecked, are still trying to reign-in the recession and looking to create economic stimulus that will help businesses and economy to 'turn the corner'. Unfortunately when you take money away from the real, healthy economy to try and cover the losses caused by the speculative "economy", the resulting financial hole can take years to plug.

Stories behind the Global Financial Crisis 2008

Here are some news stories about money, investments and economy that happened in the aftermath of the global economic crisis of 2008.

• Reserve Currency
  
  Is China ditching the U.S. dollar, as the world's reserve currency?
• Financial Trickery
  
  Banks are again up to their old financial trickery of puffing-up profits.
• Lost Decade
  
  The Lost Decade that Japan experienced in the 90s might be replaying itself in the US now.
• Solar Energy
  
  Is solar energy on its way back? USA, Australia and China are leading with their renewable energy plans.
• Alan Greenspan
  
  History will show that former Federal Reserve Chairman Alan Greenspan played a key role in creating the US housing bubble.
• April Job Losses
  
  Unemployment numbers are still on the rise, although job losses in April are at their lowest in 6 months.
• Bank of America
  
  Bank of America Chairman Kenneth Lewis testimony about hiding Merrill Lynch losses prior to its merger with BofA.
• Bank Stress Test
  
  Which are three strongest banks, according to Money Morning bank stress test.
• Bank Stress Tests
  
  Validity of bank stress tests at Bank of America and Citigroup called into question.
• Bank Test Results
  
  The U.S. Treasury Department bank stress test results to be released to the public.
• Canada's Oil Sector
  
  Play attractive Canada's oil sector via these six Canadian oil companies.
• China Lifeline
  
  Could China provide lifeline to the ailing Detroit's auto industry?
• Ciena Corp Stock
  
  Buy Ciena Corp stock on Nasdaq to profit from the growing global broadband arms race.
• Credit Card Issuers
  
  Credit card issuers meeting with President Obama, to discuss new limits on credit card fees and credit card interest rates.
• Credit Default Swaps
  
  How credit default swaps, a derivative security, could reverse the economic recovery.
• Economic Recovery
  
  Latest housing market and consumer confidence numbers may indicate sustained economic recovery.
• Elliott Wave Disciple
  
  Elliott Wave disciple Robert Prechter sees a possible 2000 Dow Jones, as economy declines further.
• Flawed Stress Tests
  
  Bank Stress Test is a flawed exercise that only elevates the current economic stress.
• India's Slow Growth
  
  India remains a good long-term profit play on stock market, despite it's current slow growth.
• Investing Strategies
  
  Why are long-short investing strategies newly popular in the current bearish markets?
• Investment Accords
  
  For the first time in 60 years new investment accords reached between Mainland China and Taiwan.
• Oil Prices Jump
  
  Oil prices could jump as much as 70%, owing to increased oil consumption vs declining oil production.
• Russia and China
  
  Will new Russia and China energy deals relegate America to spectator status?
• Small Cap Stocks
  
  Small cap stock usually beat blue chips as a safe investment, following a recession.
• Yuan Carry Trade
  
  China yuan carry trade will add to China's global muscle and might accelerate the US economic recovery.

Unwise and speculative financial dealings have led to the financial crisis in 2007,
the effects of which are still being felt today in many countries.