Swathe Global Financial Crisis and Its Predecessors

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Swathe Global financial crisis and its predecessors

Abstract: This comparative article examines causes and predecessor of 2007-2008 financial crisis, 1890 Australia depression. The recent global financial crisis suggests that we fail to learn the lesson from history. It was poor investment decisions by both government and public, and widespread failure of top names in global finance contributed to the depth and duration of both 1890s depression and 2007 financial crisis. The 1890 experience had very important long- term implications for the subsequent development of capital market. (D.T. MerreTT, 1997) .The complexity of the economics history combined with lack of detailed studies on past financial crisis has contributed to recent cataclysmic event.

1. Introduction.

The Financial crisis erupted globally and hit he world economy system with suddenness .While the costs imposed on society have been so great and are still rippling through the world economy ,the experience has also provided a great experimental data set for analysis. (Michel Melvin, Mark P. Talyor, 2009). This was the greatest financial crisis since 1930s great depression. This financial turmoil has had a devastating effect on the world economy, with global gross domestic product (GDP) contracting in 2009 for the first time since World War II and trade likely to experience its steepest fall since this time (World Bank, 2009, p. 1) This article will make an critical analyze of 1890 depression to find out what we could learn from the past and how different situation we are in during different period of financial crisis.

2. The 1890s Depression

The cause for 1890s depression was generated from over booming and over landing. Capital improved faster than it c...

... middle of paper ...

...ion should be encouraged. Many different people should be responsible for the global financial crisis, including bankers, fund managers, investors, sellers, advisors, householders, consumers, economists, journalists, politicians, and government officials. Regulatory studies has been especially enlightening in showing how private actors regulate along with public agencies, mapping all the different directions in which regulation operates and characterizing the variety of forms regulation assumes (Picciotto 2008; Scott 2009).

3．The difference between 2009 financial crisis and 1890

The recent global financial crisis has great impact on countries including the United States, Japan and United Kingdom and raised issues of concern .The 1890s Australia Depression happened within the boundary of Australia and it was under special circumstances of colonial system.

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