“the Roles of the Main Eu Institutions (Council, Commission and Parliament) in the Management of the Continuing Economic/Financial Crisis”
“The roles of the main EU institutions (Council, Commission and Parliament) in the management of the continuing economic/financial crisis”
Methodology – There is a wealth of information for this report since it is an up-to-date topic which affected the whole world. The research is based on analysis and factual material presented in European Institutions reports, books, analysis and commentary from leading economists, Irish Government web-site, e-journals from DBS Library and Google Scholar. The information taken from the Internet is written by professionals and published on reliable sites. The relevance and credibility of resources were checked and all sources used are presented in bibliography.
Background
The financial crisis of 2007-2008 is considered to be the most severe financial crisis since the 1930s. It resulted in collapse of financial institutions, bailout of banks by the national governments and an overall financial turmoil. It started with the bursting of the United States housing bubble. In this period according to Buckley (2011, p.1) real interest rates were exceptionally low and the public expenditure was growing rapidly and it was considered to be a global phenomenon as other states and not only USA were implementing “low interest rates” strategy. This fuelled housing bubble in USA, UK and elsewhere. According to President George W. Bush “everyone has an ‘American dream’ which means that every citizen should have his own house to realize his “American dream””. In order to realize it banks began to give out more loans at very low interest rates to potential home owners and as a result housing prices began to rise until they reached unsustainable level followed by severe price decreases.
As the banks increased interest rates, subprime borrowers couldn’t repay higher interest rates and they started defaulting on their loans. In fact it meant that lenders were filing for bankruptcy.
Housing bubble had serious impact on financial markets, as
Methodology – There is a wealth of information for this report since it is an up-to-date topic which affected the whole world. The research is based on analysis and factual material presented in European Institutions reports, books, analysis and commentary from leading economists, Irish Government web-site, e-journals from DBS Library and Google Scholar. The information taken from the Internet is written by professionals and published on reliable sites. The relevance and credibility of resources were checked and all sources used are presented in bibliography.
Background
The financial crisis of 2007-2008 is considered to be the most severe financial crisis since the 1930s. It resulted in collapse of financial institutions, bailout of banks by the national governments and an overall financial turmoil. It started with the bursting of the United States housing bubble. In this period according to Buckley (2011, p.1) real interest rates were exceptionally low and the public expenditure was growing rapidly and it was considered to be a global phenomenon as other states and not only USA were implementing “low interest rates” strategy. This fuelled housing bubble in USA, UK and elsewhere. According to President George W. Bush “everyone has an ‘American dream’ which means that every citizen should have his own house to realize his “American dream””. In order to realize it banks began to give out more loans at very low interest rates to potential home owners and as a result housing prices began to rise until they reached unsustainable level followed by severe price decreases.
As the banks increased interest rates, subprime borrowers couldn’t repay higher interest rates and they started defaulting on their loans. In fact it meant that lenders were filing for bankruptcy.
Housing bubble had serious impact on financial markets, as