The 2007–2012 global financial crisis, also known as the Global Financial Crisis (GFC), is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It resulted in the collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis.
The bursting of the U.S. housing bubble, which peaked in 2007, caused the values of securities tied to U.S. real estate pricing to plummet, damaging financial institutions globally. The financial crisis was triggered by a complex interplay of valuation and liquidity problems in the United States banking system in 2008. Questions regarding bank solvency, declines in credit availability and damaged investor confidence had an impact on global stock markets, where securities suffered large losses during 2008 and early 2009. Economies worldwide slowed during this period, as credit tightened and international trade declined. Governments and central banks responded with unprecedented fiscal stimulus, monetary policy expansion and institutional bailouts. Although there have been aftershocks, the financial crisis itself ended sometime between late-2008 and mid-2009. In the U.S., Congress passed the American Recovery and Reinvestment Act of 2009. In the E.U., the U.K. responded with austerity measures of spending cuts and tax increases without export growth and it has since slid into a double-dip recession.
The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth; they do not directly result in changes in the real economy unless a recession or depression follows.
Many economists have offered theories about how financial crises develop and how they could be prevented. There is little consensus, however, and financial crises are still a regular occurrence around the world.
When a bank suffers a sudden rush of withdrawals by depositors, this is called a bank run. Since banks lend out most of the cash they receive in deposits (see fractional-reserve banking), it is difficult for them to quickly pay back all deposits if these are suddenly demanded, so a run may leave the bank in bankruptcy, causing many depositors to lose their savings unless they are covered by deposit insurance. A situation in which bank runs are widespread is called a systemic banking crisis or just a banking panic. A situation without widespread bank runs, but in which banks are reluctant to lend, because they worry that they have insufficient funds available, is often called a credit crunch. In this way, the banks become an accelerator of a financial crisis.
Giuseppe Piero Grillo, better known as Beppe Grillo (born 21 July 1948), is an Italian activist, blogger, comedian and actor. He has been involved in politics since 2009 as leader of the Five Star Movement.
Grillo was born in Genoa, Liguria.
After receiving his degree as an accountant, Grillo became a comedian by chance, improvising a monologue in an audition. Two weeks later he was discovered and launched by Italian TV presenter Pippo Baudo. He subsequently participated in the variety show Secondo Voi for two years (1977–78). Later, in 1979, he participated in Luna Park by Enzo Trapani, and Fantastico.
In the 1980s his success rose further, thanks to shows like Te la do io l'America (1982, 4 episodes) and Te lo do io il Brasile (1984, six episodes). In these shows, he narrated his experiences of his visits to the United States and Brazil, with anecdotes and witticisms about the culture, lifestyle and beauty of these places.
As a result, his popularity grew more and more, and he became the protagonist of another show developed especially for him, called Grillometro (Grillometer). In 1986, he was the star of prize-winning advertisements for a brand of yogurt.
Ben Shalom Bernanke (English pronunciation: /bərˈnæŋki/ bər-NANG-kee; born December 13, 1953) is an American economist and currently chairman of the Federal Reserve, the central bank of the United States. During his tenure as chairman, Bernanke has overseen the Federal Reserve's response to the late-2000s financial crisis.
Before becoming Federal Reserve chairman, Bernanke was a tenured professor at Princeton University and chaired the department of economics there from 1996 to September 2002, when he went on public service leave. From 2002 until 2005, he was a member of the Board of Governors of the Federal Reserve System, proposed the Bernanke Doctrine, and first discussed "the Great Moderation"--the theory that traditional business cycles have declined in volatility in recent decades through structural changes that have occurred in the international economy, particularly increases in the economic stability of developing nations, diminishing the influence of macroeconomic (monetary and fiscal) policy. Bernanke then served as chairman of President George W. Bush's Council of Economic Advisers before President Bush appointed him on February 1, 2006, to be chairman of the United States Federal Reserve. Bernanke was confirmed for a second term as chairman on January 28, 2010, after being re-nominated by President Barack Obama.
Janet Louise Yellen (born August 13, 1946) is an American economist and professor, who is currently the Vice Chair of the Board of Governors of the Federal Reserve System. Previously, she was President and Chief Executive Officer of the Federal Reserve Bank of San Francisco, Chair of the White House Council of Economic Advisers under President Bill Clinton, and Professor Emerita at the University of California, Berkeley's Haas School of Business.
Yellen was born in Brooklyn, New York, the daughter of Anna (née Blumenthal) and Julius Yellen, a doctor. She graduated from Fort Hamilton High School in the Bay Ridge section of Brooklyn. She graduated summa cum laude from Brown University with a degree in economics in 1967, and received her Ph.D. in economics from Yale University in 1971.
Beginning in 1980, Yellen has been conducting research at the Haas School and teaching macroeconomics to full-time and part-time MBA students. She is now a Professor Emeritus at the University of California, Berkeley's Haas School of Business, where she was the Eugene E. and Catherine M. Trefethen Professor of Business and Professor of Economics. Twice she has been awarded the Haas School's outstanding teaching award.