Steve's lecture :

Most economists would agree that due to the credit crunch, global markets are facing potential collapse (Stiglitz, 2008; Monbiot, 2007).
As we know, our current recession began in the USA where banks got into the habit of granting mortgages to lenders unable to pay them back. This created a liquidity crisis in the country which banks and government were unable to resolve, and soon these economic difficulties spread to the rest of the world (BBC News, 2008).
Some people consider that nowadays the economic does not good so the global reactions of economic crises are more profound than before, specially for developing countries. For example banks loan money to people but they couldn’t pay it.
This essay will try to explain the main reasons for why the globalisation of the word's financial market has contributed considerably to the countries and also full up with many crises.