Economic Crisis In 2008

In life, man has always been very aware of the economic issue since the early exchanges between mid-age societies, which made up what we now know as businesses.

While financial and economic crises are recent things in our daily life, economic crises have been taking place since medieval times and these have reformulated the theories about them. Speaking about crisis is common since many years ago, but there is no a clear approach to the meaning of this term. People talk about crisis until boredom and in these days that we have so many discussions about its meaning, and how to solve it, is crucial to define clearly the causes that brought to this world financial breakdown. In his text, Cachanosky (2002) states that the first economists have indicated that the economic crisis is when there is an imbalance between supply and demand.

The causes of this economic crisis had appeared in different fields, mainly in economic sector and in the social one. As we know, United States has been always an economic potency in the world, and any kind of financial problem that affect them, may be produced because of bad financial practice, the lack of a good regulation from government and irresponsibility from the banking sector.

The simplest theory of all is the phase in which growth rates are maintained or decreased, it is considered a descending recession. So it is really important to set three variables under study, the first one is that it is crucial to understand an economic crisis , then to establish for one side the causes and by the other, the consequences that economic crisis in United States in 2008 had brought.

Finally, these crisis consequences were visible all around the world and most clearly in United States. As country potency, the consequences affected all the economies around the world that depend of U.S in some way.

To sum up, the importance of this study is to state clearly and justifiably the causes and consequences that took place in the 2008 economic crisis in U.S. All of this, with the purpose of persuade people, that financial decisions in their lives could also trigger an economic crisis.

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