Business and Finance Information

Posts Tagged ‘Giant banks’

Impact of Global Financial Crisis For Indonesia

World oil prices that could penetrate U.S. $ 147 per barrel, which led to soaring food prices and the collapse of the Giant banks around the world shows the global credit collapse which in turn can lead to economic recession. August 2008 is repeated waves of economic boom in the U.S. housing market due to subprime mortgage that happened years ago. This crisis threatened the economic depression ended with the entire world. Depression is expected to stop the growth of prosperity and employment in Western economies for about more than a decade. The failure of England’s Northern Rock, Bear Sterns in the United States (U.S.), causing the world economy increasingly bleak.

Month of September 2008 is the month in which the largest companies in the world collapsed. Rural 7 September home companies Fannie Mae and Freddie Mac, which guarantee the debts worth 5.3 trillion dollars, which covers more than half the mortgage debt in the United States, collapsed. The U.S. government was forced to save two companies with cash flow of money from their citizens for taxes 200 billion dollars. Both companies collapsed because it dared to give a debt to the people who are at high risk during the economic heyday. Joy that followed shook the world financial collapse of one of the largest investment banks on Wall Street’s financial centers in New York, United States. Lehman Brothers, one of the largest U.S. investment bank to enter a bankruptcy petition on September 15, 2008. This is the final fate of a major bank and the oldest standing in the state of Alabama in 1844 and just fell in 2007, when Lehman reported total sales of 57 billion dollars and in March and still have the time stated by the magazine Business week as one one the top 50 companies in 2008. But now, Lehman is worth no more than 2 billion dollars. Read the rest of this entry »