Crisis 2008 vs crisis en grecia

1. According to the movie Inside Job explain and analyze the main causes and consequences of the bubble crisis in 2008

Causes

• Deregulation and fall of the monetary system
• Mortgage crisis
• The repeal of the Glass-Steagall Act of 1933
• Structure of incentives, Cash Bonuses for short-term gains but did not impose fines for lost long term, this encouraged bankers to take more risks
• All deregulation in the last 20 years was a conspiracy perpetrated by an academic elite of economists in the pay of the banks
• Ignore how risk managers at many banks knowingly failed to voice their fears about the way their companies operated
• Their responsibility to monitor the accounts of banks, and when they signed off a bank's results, they were stating their confidence in the bank's ability to trade solvently.

Consequences

• Crisis investment banking
• Federal Reserve measures were not effective
• Might have prevented banks gambling with depositors' money.
• Inability to challenge trading desks generating billions in phantom profits was endemic.
• How banks refinanced at the taxpayers' expense are paying outsized bonuses
• Make many people – especially those who lost their jobs and savings – angry at not only what the banks did, but that many of the people responsible are still in their jobs, and that no one's gone to prison.
• Unemployment
• Massive re-regulation is required to ensure that finance is safely locked up in a straitjacket again.
• Since the 90s the growth of the financial sector in the US produced a series of crises each of these crises caused more damage while the industry earned more money.

1. Identify and explain the main causes and consequences of the crisis presented on Greece

Causes

• In 2010 the European Commission, the ECB and the IMF (the " troika " ) twice rescued Greece from default to 240,000 million euros
• The country was spending more money producing
• Financing such spending through borrowing
• Problems of corruption and tax evasion
• It ended well above the 3% of GDP laid down in the rules of the common currency deficit.
• Undeclared loans to the Eurozone , meanwhile , also led to the debt significantly exceed the 60 % limit as agreed by Eurozone countries
• The global financial crisis limited access to credit Greek

Consequences

• Conditioned the country's austerity measures,
• Structural reforms and reduced state role in the economy
• Results are reflected in a decline of 25 % of Greek GDP
• An unemployment rate of 26 % overall and 60 % in young people.
• Recession
• Drastic cuts in public spending , higher taxes and reforms to the pension system and the labor market

1. Analyze which are the similarities and differences between the bubble crisis and the crisis presented in Greece. Give your personal opinion about each situation

The similarities between the 2 present crisis, the 2008 and Greece is the recession that severely affected the habitants and the economy of their countries. It increased in a large percentage the unemployment rate.

Corruption and money laundering were also one of the things that affected provoked crises and increased in both countries. The price increase made ​​people wary of hurting mortgage loan market share

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