TOPIC

Global Financial Crisis of 2007-2008

Global Financial Crisis of 2007-2008
The Global Financial Crisis of 2007-2008 was widely blamed on the subprime crisis and its fallout, which led to the collapse of Lehman Brothers in 2008, with the US government forced to bail out AIG, and to rescue both General Motors and Chrysler, while also adding liquidity to avert a severe credit crunch in the banking sector. Banks in Europe, the US and Britain also came under extreme pressure and the GFC contributed to the euro zone sovereign debt crisis.
last updated:
9 September, 2024
A woman shops in a Beijing clothing store. China’s leaders are moving to boost stubbornly weak domestic demand and reduce reliance on exports. Photo: EPA-EFE
China economy

Editorial | China leaves no doubt on way forward at key economic talks

Wide-ranging measures aim to inject momentum into growth of the domestic economy and reflect tone of earlier Politburo meeting.

Diplomacy

Opinion | Trump’s victory a reminder the ‘end of history’ remains far away

videocam
5
United States

Opinion | An America awash in global capital risks spreading financial instability

videocam
Diplomacy

Opinion | Here’s how the G20 can be more than a talk shop

While the grouping did a good job of dealing with the 2008 global financial crisis, in recent years, collective action has been sorely lacking.

videocam
Brazil’s Economy Minister Fernando Haddad shakes hands with US Treasury Secretary Janet Yellen during the G20 economic ministers’ meeting in Rio de Janeiro, Brazil, on July 26. The G20 summit is scheduled for November 18-19. Photo: AFP
US presidential election 2024

Opinion | Can the US overcome its political polarisation, whoever wins the election?

Harris will have the support of the establishment but not Trump. The possibility of the the US going into terminal decline looms large.

videocam
China’s economic stimulus

Exclusive | Chinese economist calls for mega stimulus in excess of 2008’s 4 trillion yuan

Outspoken Chinese economist Yu Yongding says bigger is better for stimulus package – and the details should be revealed as soon as possible.

videocam
62
Advertisement
Advertisement
China's economic recovery

When will it end? How inexperience is fuelling the fire of China’s economic woes

Economists have ‘never seen anything like this’, and ‘challenges are on a greater scale’ than ever before, so how can China bring the wild ride to an end?

92
Illustration: Brian Wang
Banking & finance

Opinion | Reform financial markets now – or be forced into it with the next crash

It’s not just market volatility. We need to understand the deep structural forces sometimes beyond any single national regulator’s power.

videocam
ETFs

Middle Eastern investors set to access Hong Kong shares with 2 ETFs

The SFC has noticed that international investors, who previously were underweight on Hong Kong stocks, have now rushed back into the local market.

China economy

Opinion | China’s stimulus will fall short without private-sector confidence

While short-term stimulus will help, Beijing must directly address the fears of businesses and households to get them spending again.

videocam
Illustration: Craig Stephens
China's economic recovery

Explainer | How China’s 2024 stimulus compares with past packages, and what’s next?

In nominal terms, the massive package has the potential to be China’s biggest ever.

videocam
5
As part of China’s new stimulus package, the People’s Bank of China (pictured) has factored in an estimated 2 trillion yuan worth of bond issuance to help consumers and encourage local government spending. Photo: Shutterstock
Singapore

Singapore home sales plunge to lowest level since 2008 financial crisis

The financial hub has been grappling for months with slowing sales of new flats amid a stand-off between developers and homebuyers.

videocam
China economy

Opinion | China must heed its own lessons in tackling past overcapacities

Overtightening hurt China’s economy in the past. Faced with new overcapacities, China should adopt a more expansionary fiscal and monetary policy.

videocam
US-China relations

US House raises alarm over China’s multi-trillion-dollar ‘time bomb’

Ratings agencies S&P Global and Moody’s accused of failing to reflect risk posed by mainland’s local government financing vehicles.

videocam
54
Katie Porter, a California Democrat, speaks during a US House Oversight committee hearing in Washington on Wednesday. Photo: SCMP
Banking & finance

Opinion | Era of freewheeling finance leading economic growth may soon be over

In a world of contending powers with greater risks and uncertainties, the free-market model with one dominant hegemon may no longer be suitable, given the urgent need to tackle social and environmental injustices.

videocam
Activists march to demand climate and debt justice at the annual meeting of the International Monetary Fund and World Bank, in Marrakech, Morocco, on October 12, 2023. The 2008 global financial crisis revealed that the free-market order also promoted financial frailty, market instability and social inequality. Photo: Reuters
China economy

Asian Angle | What China must learn from Japan’s decades-long debt-deflation slowdown

Policymakers can ill afford to dither or send mixed signals in their efforts to rejuvenate the economy. The immediate danger facing China today is systemic contagion.

6
Banking & finance

Macroscope | As private credit warnings grow, the fear is that the horse has bolted

The IMF is warning regulators about the systemic risks of the rapidly growing private credit market, a largely opaque sector involving direct lending to corporations

videocam
Advertisement
Advertisement
Banking & finance

The View | Why the IMF must give China and other emerging economies a greater say

The US, Europe and Japan will not gladly sacrifice their IMF quotas to give China and others more voting rights. But a failure to reform the organisation will worsen rifts and weaken its ability to deal with looming global crises.

videocam
IMF managing director Kristalina Georgieva and World Bank president Ajay Banga at a press conference in Marrakesh on October 12. Photo: AFP
Diplomacy

Opinion | Collaboration is vital if we’re to overcome our health challenges

Pandemic showed global health systems can pull together against an acute shared threat. The momentum must be kept up. Recent UK healthcare education mission to China is a testament to that.

videocam
Banking & finance

Macroscope | Rate cuts or no, a new financial crisis may be inevitable

Markets and banking systems are stumbling on blindly and greedily towards a repeat of past mistakes both recent and distant. Banks being so big they can lend irresponsibly and ignore those meant to regulate them must change, and the coming crisis could do just that.

4
United States

Opinion | Imagine a world free from the oppression of a US-led global order

It would spell the end of the US ability to impose its will on the international community, shape other countries in its image and shift the burden of its economic crisis onto others.

36
Illustration: Craig Stephens
Banking & finance

Opinion | In a risky, fragmenting world, we can all forge our own development path

Whether it’s macroeconomic modelling or export-led industrialisation, the game has changed with peak globalisation, technology diffusion and climate change. Development and how to finance it is the question, and brave countries can adopt very different models from the past.

videocam
A child welcomes delegates to the Pacific Islands Forum on August 14, 2019, in Funafuti, Tuvalu, a sinking island nation. Even the global disaster of climate warming affects different geographies differently. There is no development model that fits all nations. Photo: EPA-EFE
China economy

Outside In | Economists made wrong call on 2023 recession. But their alarm is real

2023 ended without the technical recession economists expected, but their warning of stagflation and a potentially crippling debt crisis should not be easily dismissed.

videocam
Banking & finance

Opinion | Policymakers must stop hiding behind myth of ‘unprecedented changes’

It is time to stop viewing crises as exceptional events and admit how frequently shocks actually occur. The task of forecasters and policymakers is not to predict the next catastrophe but to sharpen their focus on resilience – what it takes to stay the course with politically mandated policies while minimising inevitable dislocations.

Banking & finance

Opinion | In a broken world, globalisation is dead. Long live globalisation lite

Tight coupling in a global world is breaking and we need a looser macro-management philosophy that allows for decentralised adjustments to different stresses and strains.

videocam
Climate activists at the annual meeting of the International Monetary Fund and World Bank in Marrakech, Morocco, on October 12. The global growth model has seen growing inequality, low productivity and an over-reliance on central bank monetary policy. Photo: Reuters
China economy

Asian Angle | What Hong Kong must do to prepare for years of weaker growth in mainland China

Failure to anticipate and prepare for weaker growth would mean the city sleepwalks into stagnation, or worse, lurches from one crisis to another, writes Donald Low – not unlike during the pandemic.

5
A man talks on his phone in front of the skyline in Hong Kong. The longer term implications of mainland China’s slower growth for the city are profound. Photo: AP
China economy

Opinion | A booming US economy and a Chinese crash? Think again

China is using its downturn to deflate bubbles and raise productivity while the US is doing the opposite – feeding the Bernanke bubble and hoping for an AI cure for falling productivity

videocam
28
Banking & finance

Macroscope | Signs point to another global stock market crash. Somebody tell the Fed

Changes in monetary policy have a lagged effect. The Federal Reserve’s abrupt switch to tightening last year is now resulting in investor confusion. Today’s bond market jitters and monetary squeeze bring to mind the situation leading up to 1987’s global market crash, but the Fed seems oblivious.

videocam
Advertisement
Advertisement
Help preserve 120 years of quality journalism.
SUPPORT NOW
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement