Title: Will Russia be the Worst Victim of the Global Crisis
Abstract:The first crisis in the era of globalization is developing under the classic scenario. It all started with the housing prices collapsing in the U.S. in the fall of 2006, followed by the domino effect ...The first crisis in the era of globalization is developing under the classic scenario. It all started with the housing prices collapsing in the U.S. in the fall of 2006, followed by the domino effect in the housing mortgage market with a whole range of problems caused by the secondary and tertiary financial instruments (derivatives) providing mortgage coverage and investment of the U.S. and European banks in those instruments worth many hundreds of billions of U.S. dollars. The liquidity crisis brought down stock exchange indicators and led to the credit crunch, making it much more difficult to get home or car loans. Many investment projects were frozen. By the fall of 2008, the global crisis entered the acute phase. The world was on the verge of a large-scale recession. Pessimistic forecasts were snowballing. In early October 2008, the IMF and major rating agencies predicted a 3-percent world GDP drop in 2009, and in early November, that estimate was reduced to 1.3 percent. The growth rates in the largest developing countries (China, India, and Brazil) will be declining, yet these countries will continue to display positive growth. Meanwhile, GDP indicators are most likely to decline in all developed economies.Read More
Publication Year: 2009
Publication Date: 2009-01-01
Language: en
Type: article
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