Ripple effects of US Subprime Mortgage crisis

By: EconomyWatch   Date: 30 June 2010

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In this paper we will discuss about the effects of the US Subprime Mortgage crisis on the global market. The crisis has hit the Asian as well as the Australian market . The effect on the European market is nominal. The US Subprime Mortgage crisis has sent ripples all over the world. The effects of the crisis is given below.

  • The Asian market has witnessed a massive sell off. But the European market has not suffered a lot from this crisis.
     
  • It also has hit the stock market of Australia, Germany and Thailand.
  • Since the housing bubble burst in US the underlying mortgage defaults have increased which affected adversely the global market.
  • In the Great Britain, the stock market experts have failed to realize the underlying faults.
  • One of the giant of Australian financial service, Macquarie Bank, have declared that the investors may loose 25% of their money.
  • The Nikkei stock average in Japan have decreased by more than 2%.
  • In Germany, France and Britain major indexes have fallen down, but by less than 2%.
  • The IKB Deutsche Industriebank, a small Bank in Germany, have got a hit by reason of the mortgage crisis.
  • Australia and Hong Kong's benchmark indexes have fallen down by above 3%.
  • South Korea's key index has dropped by 4%.
  • The First State Investment has withdrawn all its share from the Asian financial market.

 


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