Global financial crisis 2008 Hamburger crisis is the crisis that occurred in United State around the end of 2007. This crisis start from the policy of United State’s government by changed the policy of giving credit to customer. At first, bank tried to chose the best customer for give them a credit. After that bank needs more customers, so bank give a credit to unemployed customer. At first, everything was going well, then most of investors turn to invest on the property in order to speculate those property. They know that in the future the cost of property will increase to high price.
Most of investors try to own all the properties and that is the cause of higher price for the properties. This crisis become “bubble economy” On the Bank side, after the economic bubble, bank has an idea to help investor and consumer from that crisis by selling the mortgage to make investor come to invest their money with the bank again. After bank got a lot of mortgage, they sell in the mortgage in the lower price. The high risk of mortgage will sell in the low price and low risk mortgage will sell in the high price. In the first time, selling mortgage was going well.
They sold a lot of mortgage. After the bank sold a lot of mortgage, there were some bad customer that did not pay money to the bank and bank can’t get the money back. Most of the owners of property are selling their property, because they don’t have money to pay. Follow by the rest of owner, they also sell their property and it makes the demand decrease, that means the price will go immediately down. Now the crisis is turn up side down, most of investor tried to selling all of their properties before they loss to much money.
After the price was low, the best customers of the bank stop pay money back to the bank and leave the house, let’s bank takes the house and buy the new house that cheaper than before. At this time, all the mortgage can’t be sell any more and the economy of United State was going really bad. So, investor doesn’t want to loss their money in this country, they decide to take all the money and invest in other countries in the world, most of them come to Asia. They sell a lot of Dollar mean that the current exchange of United State will decrease a lot.
This is the effect from the crisis that affect to the investors in United State. On the consumer side, after the economy crisis, everyone want to use the money only the important things, not like before that they use for useless things a lot. After that, the demand of the market decrease, it affect to the company have to decrease their product line and they have to decrease the number of their employees, means most of American were unemployed at that time. Most of people that unemployed, they afraid to spend a lot of money to buy useless things, they can have only the important things for living.
This crisis becomes a cycle for unemployed people. In the investor side, they transfer all their money and invest outside of the United State. After that hamburger crisis, government tried to decrease the interest of the bank from loan. So, most of the company can loan money from bank and come back on the business again, mean that if the company can do the business, most of unemployed people will get their job back again, but this result just went wrong. There was nothing change in that time. The bright economist got the really great idea is quantitative easing (QE).
It is the solution by increasing the money into economy system. The first QE was made the economy getting better but not too much, then they decide to release the second and the third in order to make the economy come to normal situation. In conclusion, the global financial crisis or hamburger crisis was occurred by the government changed the policy of bank for giving the credit. Then everyone turn themselves to own the property, it made the price of property goes up really quick and make the economic bubble.
After the economic bubble, everyone try to resell their own property and change it into money or don’t pay what they borrow the bank and let bank take their property, because everything turns up side down. At this time, everyone want to sell the property, which make the price of property goes down and cheaper than before. At first people have money to pay, but right now everyone want to save money, which also made another crisis to economy. This crisis made from the fear of spending money of American, so the demand of every products were decrease, which made the firm has to reduce the product line and employees. This is the starting of unemployed. Those who unemployed doesn’t have a lot of money to buy everything, means the demand will keep going down. Those are the effect from the hamburger crisis in 2008 to United State. w
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