Economic instability observed throughout the whole world affected and damaged the financial system turning the situation into a global crisis. Its effects are considered to be terrible: high unemployment level, inflation, and bankruptcy… Economic crisis 2008 covered all spheres of human activities making the whole world shiver because of uncertainty and unawareness of the time it will end.
Analyzing the economic crisis it is necessary to underline the fact that the national banking system suffered the greatest losses breaking the hopes of millions of people. The weakening of the currency in the international arena resulted in the breakage and bankruptcy of great companies and factories taking the job of the biggest part of the population. Losses of the banking system influenced a lot of aspects of people’s lives; the change of its structure influenced the credit system is the background of human well-being. Many financial institutions and banks are unable to give people credits taking away opportunities to provide the appropriate level of life. It should be stressed that the economy of every country is built on a credit system that is why its instability leads to world meltdown.
Financial growth, jobs, and economic development are usually supported by the credit system; the instability experienced by financial institutions since 2008 resulted in a catastrophic decrease in international cooperation, market operations, and an increase in the price level. All these factors together with the high unemployment rate made the economic situation step into the global financial crisis suffered by people throughout the world.
The banking system shuttered the social standing of people investing in its development through money and gold deposits. Frankly speaking, lots of people lost their hopes because of financial losses being unable to return their investments made before the crisis began. Millions of families deposited their collected money in order to provide a better future for their children…
Inflation and unemployment among the population resulted in people’s disability to pay long-term credits provided for the houses purchasing. The banking system turned the world situation into mass disorder; its disability to provide loans to businesses and sole proprietors make obstacles to further development. The current situation shows that a number of small and big enterprises stop their activities through the absence of financial support and investments. As a result, a great part of the population lost their job and opportunities to support their families. The world generation will remember this stage as the breakage of hopes and complete economic ruin.
Global economic crisis 2008 will leave a print in the world history as the period of losses and industry breakage. Banking system instability being the part of global economic crisis and covering the whole world highlighted weak international market position influencing not only the country well being but the fortune and financial position of ordinary people. The question is who we are to blame?… This aspect is still an issue; millions of families suffered political and financial mistakes of the governments losing their jobs and being unable to provide sufficient education for children because of the high price policy and inflation rate in the country. It is difficult to predict or forecast something because the situation seems to be hopeless; though the only way out for ordinary people is to believe in a better future and soon recovery of the world economy.