The Financial Crisis: Origins, Causes And Conclusions

• Author: Eneida Permeti, Blerta Mjeda
• Position: University of Tirana
• Pages: 100-107

ISSN 2410-3918 Academic Journal of Business, Administration, Law and Social Sciences Vol 1 No 1

Acces online at www.iipccl.org IIPCCL Publishing, Tirana-Albania March 2015

100

e Financial Crisis: Origins, Causes And Conclusions

Eneida Permeti

University of Tirana

Blerta Mjeda

University of Tirana

Abstract

e crisis in recent years took start in response to a crisis of the real estate market in the United

States in 2007. e year 2009 has seen an economic crisis and between 2010 and 2011 it was known

the spreading of the crisis sovereign debt and public nances of many countries. e nancial

markets failed in their main task: the allocation of risk. e products and services traded in the

nancial market are characterized by the immateriality and legal complexity. It means a high

uncertainty degree and a high risk. erefore is very important to protect the investors and this

means: give them the right information, right legislation, market condence and a product that

respond to their needs. e crisis causes are: weaknesses in the regulatory, malfunction of the

rating agencies, political errors and conicts of interest. is means that we need: more rules, more

capital, less debt, more transparency. e nancial markets and the economy have always moved

in harmony and savers have undertaken a countercyclical behavior, against trend or against the

cycle and for investing in nancial markets with the probability in favor we need a map that comes

from the statistics.

Keywords: nancial market, risk, crisis, statistics, future.

Introduction

Since the summer of 2007, the world was shocked by the most severe nancial crisi in

history. Losses are now counted in thousands of dollars. In 2008, the stock exchanges have

lost nearly 30 trillion of dollars. e economic recovery is a matter for the Central Banks

and the governments. It is important to know the causes of the recession for nding the

best maneuvers: making mistakes in managing a crisis can have disastrous consequences

and prolong the duration.

e collapse causes

In each country, the economic activity is subject to cyclical variations. e economic

cycle goes through dierent phases: phase of growth (the GDP increases rapidly), phase

of recession (the GDP decreases), phase of depression ( the production stagnates and the

unemployment remains at high levels), phase of recovery ( the GDP starts to increase

again).