BUS 010 Lecture Notes - Lecture 20: Global Financial System, Moe Williams, Cash Flow
Document Summary
The increasing levels of economic turbulence associated with the global financial crisis, often referred to as the credit crunch or great recession , that hit the world economy in the. 2000"s will be a defining feature of the early twenty-first century. To shed light on the emergence of corporate responsibility and sustainability in addressing a new external environment of business, we look first at the causes and consequences of recent economic, social, and ecological crises that have triggered change. Immediate cause of the crisis was attributed to the collapse in the u. s. housing market as a. Promises to pay money to investors based on the cash flow of mortgage repayments. Cdo"s were split into different risk classes: senior, mezzanine; and, junior. The global financial system had become vulnerable and interconnected in ways that were not understood by either the captains of finance or the system"s public stewards .
