you are required to analyze the previous financial crises including, the Asian financial crisis, the global financial crisis of 2007-2008, and others, and summarize their effect on the global economy. After that, you are required to analyze the current global pandemic situation and present your thoughts as to how this crisis will lead to a new financial crisis. (You may also disagree that no financial crisis is visible).
Best answers should involve: discussion of Asian financial crisis, global financial crisis (GFC) 2007-2008 and related crises, the adverse effect of these crises on world’s economy, why do you believe that current situation may or may not cause a GFC, What are the possible ways to come out of this situation?
I think is an assignment given to you.
However here you can read about the financial crisis of 2007-2008 and prepared the assignment.
The mortgage crisis, the sharp collapse of liquidity in global financial markets starting in the US as a result of the collapse of the US housing market. It threatened to destroy the international financial system. Due to the failure (or near-failure) of many large investment and commercial banks, mortgage lenders, insurance companies, and savings and loan associations. And the Great Depression (2007–09), the worst post-recession economic crisis (1929– c. 1939).
Causes Of The Crisis
Although the root causes of the financial crisis are a matter of controversy among economists, there is general agreement on the factors that played a role (experts do not agree on the importance of their ratio).
First, the Federal Reserve (Fed) of the United States, in anticipation of a mild recession beginning in 2001, lowered the rate of federal funds (interest rates that banks borrowed overnight from federal funds). Charged to each other, ie, balances held with the Federal Reserve (11 times between May 2000 and December 2001, from 6.5% to 1.75%). This significant reduction enabled banks to extend consumer loans at lower interest rates (interest rates that banks charge on their “prime,” or low-risk customers, usually three times the federal funds rate. Percent higher) and also encourage lending to “subprime”, or high risk customers, albeit at higher interest rates (see subprime loan). Consumers took advantage of cheap credit to buy durable goods such as appliances, automobiles and especially houses. The result was the rapid emergence of the “housing bubble” in the late 1990s (speculation of rising house prices to their core, or intrinsic, value-for-money levels).
You can read more about Financial crisis of 2007–08 here