US Financial Crisis: Effects on Global Banking
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Code : ECC0007
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Region : Global |
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The Rise of Global Banking and its Exposure to US Financial Market The world's financial system started gaining momentum with the rise of US as economic superpower after the WorldWar II. Free market economists, led by Friedman, propagated that "markets would be better in allocating capital than bureaucrats".1 The US advocated universal multilateralism aimed at reducing trade barriers and promoting economic interdependence. The world bought this philosophy and globalisation gained prominence, especially from 1970s with majority of governments opening up their economies... The US Debt Market Since 1975, the US constantly maintained a global share of above 20% in the world income.4 The country has remained an economic giant in the world financial market through its capitalist policies. The country's constant growth boosted confidence in the global financial market. Amongst the various sources of investments worldwide, Treasure bonds (T-bonds) of US were considered to be the safest, as they were guaranteed by the US government, backed by a colossal and ever growing economy... |
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