Economic Collapse Financial Crisis

The Meltdown of Financial in 2008

Governments

Banks and Companies

People

Government

The Central Bank

Currency

Rescue plans

The Central Bank

Wikipedia

Currency

http://www.alrainews.net

In 1971, the currency of the USA started to be related with the economy of the country its self.

A 100 Dollars cost 4 cents.

The government of the United States sells as a $100.

All currencies in whole world are related with Dollar whether directly or not.

For example, China has 2 trillion dollars in Chinese home, which means China cannot communicate with world without dollars.

Wikipedia

Inflation

The USA lost $ 10 trillion of the currency value, which affected all currencies were related directly with the United States’ currency.

Some currencies started to be not related with dollar.

Rescue plans

This company is one of the pillars of the U.S. economy

One of the rescue plans from the government of the United Stats was paying $ 85 billion to support this company.

The US government supported City Bank by $ 300 billion.

The government of the United Stats supported banking sector by $ 700 billion.

After that, China, Europe, and some of the Asian countries did the same.

The GM company almost went bust or went bankrupt. After that, the United Stats government supported GM by $30 billion, so United Stats government owns $45 billon of the company.

http://www.washingtonpost.com

Mortgage

Mortgage

The government supported Freddie Mac and Fannie Mae by $ 200 billon.

The Gulf countries lost $10 billion because of the mortgage.

The government of the United Stats paid $540 billion to support mutual funds.

The Gulf countries lost $1300 trillion in mutual funds.

In the middle of 2007, the oil price was $140 per one barrel.In the end of 2008, the oil price was $36 per one barrel.

Banks and Companies

After working 150 years, the Lehman Brothers Bank went bankrupt.

J P Morgan Chase Bank bought Bearn Stearns Bank.

Bank of America bought Merrill Lynch Bank.

Goldman Sachs Bank and Morgan Stanley Bank changed their system from investment banks to commercial banks.

http://www.pinoymoneytalk.com

People

People

In the United Stats 2.6 million people lost their jogs.

By comparison, the 2.6 million jobs lost in 2008 nationwide were equal to the number of jobs found in states such as Wisconsin, Missouri or Maryland.

http://money.cnn.com

What made it worse?

Almost all financial experts and economists did not predict that would happen. They predicted that would be recession.

http://www.alayam.com/articles