Research paper - The financial crisis of 2008-2009

My major is business administration, so I am interested in business matters. In recent years, the financial crisis which was started from early 2008 and has been existed now is the topic that I want to research. On Friday, I thought about several questions about this global financial crisis, such as what were the causes of this crisis? In fact, I know this financial crisis is more complicated than I think, and probably I may not find all the causes and answers. Nonetheless, as a business major student, I think this crisis would be an interesting and academic topic to research.

Actually, I had some background knowledge about this serious financial crisis. Therefore, this research would not be too difficult to me. Besides, after I read the information about this crisis on the Wikipedia, I had the more comprehensive concept about this biggest financial crisis since 1930s’. Thus, in addition to the main causes of this crisis, I also want to find out the reactions that U.S. government takes, the effects on several Asian countries, especially my home country, Taiwan, and the situations that U.S. citizens face.

So far, I think this global financial crisis was directly resulted from subprime mortgage. However, there are several potential problems had been existed many years ago, such as Americans loaned a lot of money from banks and could not pay off. Consequently, banks suffered from substantial bad debt, and this made the U.S. financial structure vulnerable. As a result, people could not pay their debt, banks ran out of their cash, and the U.S. economy collapsed. Moreover, many abroad important companies invested millions of money in U.S. markets and several countries bought U.S. treasury binds, such as Mainland China and Japan, were deeply affected by the slump of U.S. economy. These companies and countries were also playing key roles in global economy, so the downfall of them affected more countries and companies. In the end, the chain reactions crushed global economy.

I hope that I can learn more in the area that the ways which companies and governments handle this crisis because their reactions may give the concepts that I can apply to real business world in the future. Furthermore, by doing such research, I might predict how long the global economy would get better. It is important to me because I can arrange my life plan, whether I should study for a doctor degree after I finish my MBA degree in the future. Therefore, I really want to learn more in this field for my short tern and long tern goal.

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