2008 Financial Crisis - Analysis Of Causes And Implications Essay

2008 Financial Crisis - Analysis Of Causes And Implications - Essay Example Qualitative data includes position papers, articles from academic journals and business media that shed light on the crisis, its causes and its impact on the various stakeholders. The quantitative and qualitative data were analyzed to understand the causal, relational and descriptive aspects of the research question: 1. What are the causes of the 2008 financial crisis? 2. How are these causes related? 3. How did the crisis affect the major stakeholders of the global economy? Literature Review One challenging aspect of writing this paper was selecting from a wide range of available literature on the subject, each one proposing a unique perspective on the causes and effects of the 2008 financial crisis. Included are articles by a wide range of academics, Nobel Prize-winning economists, hands-on managers, legal theoreticians and practitioners, investigative journalists, politicians, accountants, public and private bankers, labor law experts, and engineers. For this paper, the researcher looked at reference books, journal articles and working papers in economics, financial management and accounting, newspaper articles and the Report of two government bodies enacted by law. Many authors, some better known, were not included because they were published later or duplicated the analysis found in the earlier works. The earliest references predicted the economic crises before it happened. University of Chicago economics professor Rajan (345-46) warned in a speech before the Federal Reserve of Kansas in 2005 of â€Å"excessive risk taking in financial markets and the possibility of a full-scale financial blowout.† NYU Prof. Roubini... One challenging aspect of writing this paper was selected from a wide range of available literature on the subject, each one proposing a unique perspective on the causes and effects of the 2008 financial crisis. Included are articles by a wide range of academics, Nobel Prize-winning economists, hands-on managers, legal theoreticians and practitioners, investigative journalists, politicians, accountants, public and private bankers, labor law experts, and engineers. For this paper, the researcher looked at reference books, journal articles and working papers in economics, financial management and accounting, newspaper articles and the Report of two government bodies enacted by law. Many authors, some better known, were not included because they were published later or duplicated the analysis found in the earlier works. The earliest references predicted the economic crises before it happened. University of Chicago economics professor Rajan warned in a speech before the Federal Reserve of Kansas in 2005 of â€Å"excessive risk-taking in financial markets and the possibility of a full-scale financial blowout†. Roubini followed almost a year later in a speech before the staff of the International Monetary Fund, when he warned that there was â€Å"a more than 50 percent risk of a U.S. recession the following year, because, over the past several years, U.S. consumers had gone on a spending binge, with many using their home equity as an â€Å"ATM† . In 2007, BIS reported: â€Å"the world economy was in danger of a major slump†.