Find Out Little Known Facts About American Financial Crisis
posted in Uncategorized |American Financial Crisis Moved to Great Britain
Great Britain Representatives passed their words for Northern Rock depository bonds. Still it didn’t calm down those who are trying hurriedly to retrieve their money. They are expecting Chancellor of the Exchequer resignation in Great Britain while Russia is estimating potential losses of the liquidity crisis risk.
Northern Rock, which is one of the five largest banks in Great Britain, depositors kept standing in huge queues in hope to retrieve their deposits. In July 1.4 million depositors possessed the depositors of 24.4 billions. The bank unfortunately “shook” when faced cash lack in august this year.
Within the day the Northern Rock valuation has fallen by the third and within 2 days by 49%. According to experts” predictions it will not stay alive under preset conditions. The stock values of other mortgage banks have been decreased as well among them – Alliance and Leicester, Bradford and Bingley. So to say one crediting establishment “illness” rows to an epidemic caught by the others.
Chancellor of the Exchequer said the Government will help both Northern Rock and the other banks which have faced the strain on liquidity. Still the very Government was criticized for the wrong policy which led to such situation.
Admittedly, the strain on liquidity came to Great Britain from the USA where the ‘bulb” of mortgage credit blew out. Today specialists are following events at the USA markets trying to foresee the following actions.
Someone thinks American financial crisis bring about a double threat to other countries. First of all market requirement decrease may “bite” the countries which direct considerable mount of their product to the USA. Among them are Mexico, Israel and Columbia. And Mexico has the record index – 85%. Moreover Thailand the growth of economic development of such countries as Thailand may also fall down for they depend on American demand considerably.
Secondly American financial crisis may reflect on the “growing markets” which however will undergo this influence on different levels. Such countries as Brasilia and Russia have created significant reserves to be able to wait out the instability.
At the same time other countries have basis or threats. Turkey and Hungary which faced budget deficit and the countries which have problems in financial policy, including Argentine and Venezuela are in the poorest conditions. Rating agency Standard and Poor’s gave a list of the countries which will suffer from the strain on liquidity. Within the list there are countries which “borrow more than save” – the majority of African republics and several Eastern Europe countries.
