GEOG 122 Lecture Notes - Lecture 5: Government Debt, Economic Geography, Financial Statement
Document Summary
Austerity government slash expenditures to make up for financial losses. All of the above resulted in social protest. A credit crisis occurs when borrowing requests are refused. So, when money stops flowing you have credit card crisis. Because of increasing debts, bank began to accumulate large debts, Government steps in but they increase their debt, and banks may stop lending to them: sovereign debt crisis. Led to imposition of austerity measures on some countries albeit contested eg: spain. They tried to impose conditions, that only to better nations. The housing bubble the price of housing in the us increases rapidly from mid 1990"s. Low interest rate fueled demand for mortgages and homeownership. Makes housing more affordable, consequently demand for housing will increase and so the price. Result of alan green span"s policy following dot. com bust. Mbs/cdo was like a treasury bill except paid a higher interest. It was an analogy to france in 18th century, not related to 1&2 world.
