What are Main Reasons for World Financial Crisis 2009?

6 ANSWERS

1. Brett
   

   The financial crisis has enveloped the entire world these days. Even the countries with strong economic conditions are suffering from this. The present threat of suspected entrance of depression is not an event suddenly came about. for me the reasons are simple.
   
   No1 being the  unequal distribution of wealth which we face here today in our country . it is on very fast increase with the passing of time, some from the rich group became economically and politically so sound that they either entered in the policy making group or became capable of influencing the policy makers. Therefore, the economic policies went on being so formulated that the part of national income going into the hands of these rich elites, and wealth went on increasing. where as little was done for the productivity of common man.
   
   another reason is the lending institutions in the western countries use funds deposited by their clients and forwarded this money as loans to those persons wanted to buy homes or automobiles.The borrower does not pay attention to the amount of money he will be paying in interest during the term of contract thus hes increasing his debt. where as the company suffers great loss in shape of non-paying clients.

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2. Faisal Mehmood
   

   america :P

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3. Guest1397
   

   i think this is regarding to Americas bank's.

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4. Guest3752
   

   i think the main reason is American  bankruptcy

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5. Guest3188
   

   This is nothing more than the usual rectification that occurs after the acceleration in either direction that always occurs in an imperpect market.
   All this talk about subprime-mortgages being the culprit is nothing more than nonsense, the fact of the matter is that the default rate is higher in the middle class ("normal mortgages", than it is in the subprime-mortgage market.
   
   But certainly the mortgage crisis has influenced home-pricing in a way that other parts of the real-estate market also get rocked.
   
   Then we are closing in on the real reasons, even though all markets are consumer driven in their ends, it is the corporate America that had and has problems, they can not very well blaim their problems on the mortgage crisis!
   
   It is also funny that the banks are repaying federal credit, as they do not need it!
   At a time where the interest rate is historically low! (Which would normally lead to a large demand in credit from consumers and businesses)
   
   The good news is that in 2014-2015 good times are back!

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6. Guest5737
   

   very nice information. Thank you

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