The Global Financial Crisis ( Gfc ) - 1761 Words

For me the Global Financial crisis (GFC) has been/is quite important because I remember the majority of what happened and is still going i.e. the aftermath of the GFC. However, I have never really looked at GFC from a study purpose point of view. Moreover, although I had followed the crisis in the news I had never really thought about the meaning of the financial terms like Collateralized Debt Obligation (CDO), derivatives and the International Monetary Fund (IMF), just to name few. Therefore, it was quite interesting for me to read the articles for this week’s class. Being from Denmark one of the first things that I remembered was the housing bubble in the U.S. and then I heard about the Icelandic Bank crack and that they had borrowed†¦show more content†¦According to Helleiner, the subprime loans were given to people who did not have enough financial proof i.e. they were not creditworthy and should not have been given the loan, as they could not pay the mortgage back. This then created a ripple effect or spillover effect that spread to the rest of the States that had financial ties with the U.S as well as those States that invested in their mortgage financial products (Helleiner, p. 69). Since my Bachelor degree is from Copenhagen Business School and my bachelor degree is more in the humanities/Business communication combined with European studies i.e. the EU, I had more looked at it from an EU perspective and not really the financial part or the global aspect of the financial crisis. I learned and saw that when the crisis hit Europe, the EU was really being put to a test because all 27 members were connected by the ratified treaties that they were signatory to in order to become an EU member which also meant that the financial burden had to be divided amongst the members. Germany being a very big State had to carry the largest burden and that has begun to put a strain on Germany’s patience (Connolly). Therefore, I found it quite interesting to read about the financial crisis and the background of it i.e. that it goes back to the 1990s in Helleiner’s article Understanding the 2007-2008 Global Financial Crisis. According to Helleiner, Strange warned about the crisis back in 1998