Ripple effects of US Subprime Mortgage crisis

Abstract:

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.

Abstract:

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• The First State Investment has withdrawn all its share from the Asian financial market.