3. CAUSES:
• Boom and bust in the housing market
• Speculation
• High risk loans and lending practices
• Securitization
• Inaccurate credit rating
• Government Policies
• Central bank policies
4.
5. IMPACT ON THE WORLD:
•International Trade
•Decline in growth
•Collapse of US’s financial sector
•Eastern Europe
•Severe loss of confidence in global economy
•GDP of the Japanese Economy
•Slowdown in Latin America and Caribbean
•Asian Factories
•Unemployment
6. IMPACT ON INDIA:
•Impact on stock market
•Impact on India’s trade
•Impact on India’s export
•Impact on India’s handloom sector, jewelry export and
tourism
•Exchange rate depreciation
•IT-BPO sector
•FII and FDI
(contd.)