The Financial Crisis: Origins, Causes And Conclusions

AuthorEneida Permeti, Blerta Mjeda
PositionUniversity of Tirana
Pages100-107
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).

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