- Great economic crises had deep social effects, affecting economic changes around the world
- The great crisis from 1929-33 began in the USA with a crash on the New York stock exchange, led to mass unemployment, bankruptcies and a decrease in production
- The oil crisis in 1973 caused by OPEC resulted in recession, inflation and changes in the energy policy of industrialized countries
- The global financial crisis 2007-09 had a source in the collapse of the Real Estate Market in the USA, the fall of the Bank Lehman Brothers and the panic crisis
- More important information can be found on the Onet's main page
After the US President Donald Trump was announced on April 2, new elevated duties on almost all countries of the world occurred in the world's rapidly on global stock exchanges, where the losses within three days were $ 9.5 trillion. This data was provided on Monday by the Bloomberg agency. In this context, it is worth recalling the greatest financial crises in the last century.
The great crisis has changed history
The most difficult in the history of capitalism was the great crisis in 1929-33. It began in the United States with a crash on the New York stock exchange and spread all over the world, which was consequences of mass unemployment and a decrease in production.
On October 24, 1929, the economic situation suddenly collapsed and the actions began to fall. After this “Black Thursday” “Black Tuesday” took place on October 29, when the largest crash on the New York stock exchange took place. This event is considered the beginning of great depression in the USA.
In the first days of the crisis, the shares fell by 30 %, and and half of November they reached 50 percent. A wave of bankruptcies and production collapse started. The great crisis also had enormous social effects. There have been many suicides because of the loss of work and property.
Among the reasons for the great crisis, experts mention the ease with which the loan could be obtained and that many people, seeing the bull market on the stock exchange, bought shares massively. Meanwhile, the value of shares of some companies exceeded their real value, which was possible due to the lack of transparency and meticulous controls.
When there was a collapse, the shares became worthless, and the companies were bankrupt.
The US crash also quickly influenced economic relations in Europe. American companies stopped investing in the Old Continent and withdrew.
The crisis has overwhelmed all sectors of the economy and almost the whole world. It lasted until 1933, but in some countries even longer.
Oil crisis
1973 is a great oil crisis, which covered all highly industrialized and addicted countries and numerous areas of the economy.
Its direct cause became the raising of oil prices by OPEC – the organization of its producers and exporters, which was a political punishment for the West for support given to Israel in the war of Jom Kippur with the coalition of Egypt and Syria.
A sudden increase in prices caused a shock, leading to the crisis combined with recession and inflation. Due to the reduction of access to oil, there was a collapse in the shipbuilding industry and changes on the automotive market. They began to move away from the use of large cars, in need of large amounts of fuel. Significant changes in the energy policy of many countries were necessary, which prompted some countries to use other energy sources, including nuclear.
Fall of Lehman Brothers
The beginning of the 21st century was a global financial crisis in 2007-09, which was caused by the collapse of the real estate market in the USA, including mortgage loans. His first sign was the decrease in real estate prices in 2006, and the most symbolic event related to this crash is the fall of the fourth largest investment bank in the United States, Lehman Brothers, who unsuccessfully tried to receive help from the American Central Bank.
He went bankrupt then the largest savings and mortgage bank – Washington Mutual. It was the most significant bankruptcy of the bank in the history of the world. As a result, thousands of small investors suffered losses.
In the face of the threat of the fall of subsequent banks in the US and Europe, there was a crisis of trust in the interbank market and a decrease in activity on the money market.
Consumption and production fell in the United States, unemployment and debt grew. The American mortgage crisis moved to Europe. Settleness lost investment funds; There was a panic on the markets.
Forecasts regarding the recession deepened the decrease in share prices on all stock exchanges.
At the beginning of 2009, the G8 Groups developed rescue packages. Some countries, including France and the USA, were accused in this context of protectionism.
There was also a phenomenon of pumping money, which resulted in an increase in raw materials prices and speculative operations in this market.
As a result of the financial and banking crisis, the euro area suffered, in which a decrease in GDP was noted. Greece, which was in the most severe crisis, received the greatest financial assistance.
The Covid-19 pandemia in 2020-23 also caused a serious collapse in the global economy.
