In this report, I have analysed the global financial crisis of 2008, which started in the US financial system and markets, but spread across the world, crippling most of the economies and forcing many into bankruptcy and recession.
Fixed Income Security Project explains the economics of the world and the global economics is driven is dependent on the way that the developed and developing nations across the world handle their markets and economics. We no longer live in a world where the event of any one nation and economy does not impact countries across the world. The days when each country was cocooned by itself are over. In this era, the economies of the world and of every country are interlinked with strong dependencies on each other. The way that the markets have opened up in the last few years has had a ripple effect across the world. The world markets are directly interconnected and the performance of each is dependent on all the others. The international markets now depend more on the financial flow across the nations and the way the money moves across markets. In this era, we see a lot of foreign investments in developing markets due to the attractive investment options in such markets and the potential for growth. In the earlier days, the markets were not so interconnected. Investments were generally made within the primary country by investors and seldom was there such open cross country investment. The globalisation of the world, which has made the world a smaller place, has also led to the change in the financial markets.