September 15, 2008, declared bankruptcy of investment Bank Lehman Brothers, at that time considered the largest financial organization. This day is considered the beginning of the first global crisis of the XXI century.
I must say that prior to the development of the global market economy the crises were local and rarely go beyond a particular state. In the “circulation” of economic turmoil emerged in the twentieth century, when economies began to depend on each other. In the last century mankind has experienced several major crises, some did not know their entire story. The largest and most destructive — in the material Aephi.
The first crisis (1900-1903)
The first economic crisis of the modern era occurred in the beginning of the XX century — the years 1900-1903. The causes of the recession was the sharp economic recovery and overproduction of raw materials in a number of Western countries and Russia.
As a result, prices have fallen energy, and began one after another to declare themselves bankrupt. In Europe and America, rapidly growing unemployment, and to resist was only to monopolists and cartels. The result of this crisis was the concentration and monopolization of production in developed countries.
It is worth noting that in Russia the crisis came early in 1899 went bankrupt many machine-building and metallurgical companies, reduced extraction of raw materials, which reduced the pace of railway construction. To reach the bottom and emerge from the crisis Russia was possible only after the Russo-Japanese war and the 1905 revolution.
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Bank panic (1907)
Plans to increase foreign exchange reserves forced the Bank of England in 1907 to dramatically increase the interest rate. London has managed to increase the inflow of foreign capital, but this decision has not gone unnoticed to the US economy. The fact is that invested in the British economy investors have massively left the us trust companies and banks, from-for what there was a great collapse of the new York stock exchange. The curtain people rushed to withdraw savings from U.S. financial institutions, and left without liquidity, banks declared themselves bankrupt.
Besides the U.S., this crisis has affected the economies of Italy and France, but economic turmoil in these countries has been much weaker than in the States.
The great depression (1929-1941)
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The onset of the great Depression was preceded by a consumer revolution and a speculative boom in the United States. The stock market grew at a faster pace: between 1928 and 1929 the average price of securities soared by 40%, and the turnover of trade grew from 2 million shares per day to 5 million Americans did not stop the inflated stock prices, and they are tightening the belt continued to buy them hoping for a good score in the future. To purchase securities, investors took out loans. The excitement generated by the stock bubble, which burst in “black Thursday”, October 24, 1929, when the industrial index Dow Jones has decreased to the level of 381,17, and investors in the panic started to get rid of securities. One day has sold more than 12.9 million shares and the Dow Jones fell by another 11 %.
“Black Thursday” was the first link in the chain of crisis of 1929. The crash resulted in “black Friday” (October 25), “black Monday” (October 28) and black Tuesday (October 29). During these “dark days” has sold more than 30 million of securities. Due to the stock market crash ruined thousands of investors, the loss of which was estimated at least $ 30 billion.
Behind the ruined shareholders one after another began to close down banks that are actively issued loans for the purchase of securities, and after the stock panic has recognized that you can not repay debts. For bankruptcies of financial institutions reached bankruptcy without the ability to get loans plants and different kinds of organization could not continue to exist. A consequence of large-scale bankruptcy of enterprises has become catastrophic growth of unemployment.
Stronger from the crisis that originated in America, has suffered in Germany and the UK. A few years before the collapse of wall Street London revived gold standard, attributing the pound’s prewar value. The British currency was overvalued, which British exports have increased in price and have ceased to be competitive. To support the pound, Britain was left with no choice but to borrow overseas in the United States. And when new York was reeling from the “black Thursday” and the rest of the harbingers of the great depression, the crisis moved in the direction of Albion. And from there I went to a chain reaction of all the European States, only recovered from the First world war.
In the first years of the great depression, America’s economic growth declined by 31%. , US industrial production had fallen by almost 50%, and prices of agricultural products fell by 53%.
Resuscitation of the American economy has begun after in March 1933 the country was headed by Theodore Roosevelt, who was able to reverse the depression in the climb. To achieve a breakthrough was possible thanks to the policy of “strong hand”. To finally get out of the great Depression, America was able only after the Second world war.
Energy crisis (1973)
The first energy crisis coincided with the beginning of one of the Arab-Israeli wars. In 1973 the member States of the Organization of countries-exporters of oil (OPEC) announced production cuts of “black gold” and refusing to export raw materials to countries supporting Israel. In result, oil prices soared four times, thereby benefiting the sellers of raw materials and much lost buyers.
In particular, the losing parties were the United States, France, Italy, Germany, Japan. In these countries reduced real production, inflation soared, began interruptions in power supply to homes and institutions, followed by mass layoffs and strikes soared, the price of gasoline. 15 million people were left without work.
To cope with the crisis, governments of affected countries have imposed strict power-saving mode, began to use coal and natural gas, and develop nuclear energy.
This event had a strong influence on the Soviet Union because it was after the Soviet Union became one of the key sellers of energy.
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The Asian crisis (1997-1998)
The next large-scale economic crisis of the twentieth century originated in the Asia-Pacific region. Economy so-called “Asian tigers” (South Korea, Hong Kong, Taiwan and Singapore) grew by leaps and bounds, and indecently short time, they have become the leading States in the region. The rapid development and investment boom resulted in overheating economies and in the mid-90s in ATOR the economic crisis.
During the crisis, sharply increased inflation, the national currency of many countries in the region depreciated by 100-200 %, stock markets collapsed, investors began hastily to withdraw capital from Asia. The crisis affected Thailand, Indonesia, Malaysia, South Korea, while Singapore, Taiwan, Hong Kong and Japan were less affected.
To overcome the consequences of the crisis to the countries of Southeast Asia helped the international monetary Fund. An echo of events in this region was the economic crisis of 1998 in Russia.
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The global financial crisis (2008-2009)
The financial crisis of 2008 was the first economic shock of our time. Its cause is the classic overheating asset market, and for Russia — overheating of the oil market. Before this event for several months, the price of oil rose so rapidly that the increase is determined the development of the crisis. And as soon as the price rose significantly above 72 dollars a barrel, the economists, it became clear that the crisis in one form or another will happen.
The crisis lasted about a year and a half, then most States and industries began to recover. However, according to some experts, this economic shock has not disappeared and what is now happening in the global economy, represents the second wave of the 2008 crisis.