"IT WAS the growing rate of default on home mortgages in America that precipitated the financial crisis five years ago. These delinquencies, although not enormous in themselves, became impossible for some investment banks to bear, thanks partly to their own heavy debts. As the contagion spread throughout the financial sector in 2007-08, nervous or cash-strapped banks and other creditors stopped lending, thereby infecting the rest of the economy. Deep recessions and big financial rescues then led to a surge in government debt. That, in turn, raised fears about the solvency of various countries in the euro area, culminating in Greece’s default in 2012. Debt was, then, both a cause and a consequence of the crisis, and remains a big reason for its continuance".
Give a more longer term perspective of Economic trends and the Macroeconomic and Monetary Interdependence of the Global Economy. With the Background of this approach the blog will deal with the implications for Investment decisions. The author believes that China and the Asia Pacific Region are and will be the powerhouse for the global economic growth for years to come. It will also cover IT because of its momentum driver for economic growth.
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