I never knew what Economic crisis is, though I had seen my dad glued to CNBC a lot during the last 1 year. On Monday, I was thinking what topic to choose for my new blog post and I saw "Economic Crisis" flashing o the TV screen. I asked my dad about it and he explained me a bit on what it meant. I am writing below what I understood. I know that the economic crisis means much more than what I have understood and written here.
With the information I have, I understand the Economic Crisis started when the banks didn't have money. All their money was gone because people were unable to return the money they had borrowed as housing and other loans. Thus, banks started collapsing. Further, the industries and the offices didn't get loans from banks to buy materials and pay the employees and workers. because of this, there were job losses or delayed salaries. This resulted in people unable to buy expensive things from the market. This lead to shopkeepers loosing business. Overall, lots of people, businesses, banks, industries etc have run out of cash. Even the stock markets crashed.
Today, the world is looking forward to Obama and other world leaders to introduce policies which can bring us all out of Economic Crisis.
With the information I have, I understand the Economic Crisis started when the banks didn't have money. All their money was gone because people were unable to return the money they had borrowed as housing and other loans. Thus, banks started collapsing. Further, the industries and the offices didn't get loans from banks to buy materials and pay the employees and workers. because of this, there were job losses or delayed salaries. This resulted in people unable to buy expensive things from the market. This lead to shopkeepers loosing business. Overall, lots of people, businesses, banks, industries etc have run out of cash. Even the stock markets crashed.
Today, the world is looking forward to Obama and other world leaders to introduce policies which can bring us all out of Economic Crisis.