Financial 2008 Crisis It is undeniable, the financial crisis that hit a country, especially in the superpower countries will affect finances globally. For example, the 2008 financial crisis, in which the financial crisis that occurred in the United States, indirectly affected the financial conditions of other countries.
This is especially the case for countries that depend on the superpower for their economy. In fact, not a few of them experienced the same financial crisis as the United States, even worse.
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Financial 2008 Crisis – Explanation of the 2008 financial crisis
In the span of 1990 to 2010, at least there were several financial crises that hit countries in the world. One of them is the financial crisis that hit Indonesia in 1998, at which time, Indonesia experienced a fairly severe financial crisis, perhaps even the worst financial crisis since Indonesia’s independence.
While in other countries, the financial crisis occurred on a different timeline. One of them is the 2008 financial crisis, in which the financial crisis is believed to be a global financial crisis, which was experienced by several countries at once, with the 2008 financial crisis timeline almost simultaneously. Precisely just a few months later from the financial crisis experienced by the United States.
The explanation of the 2008 financial crisis itself does refer to the financial crisis experienced by the United States. In a sense, the 2008 financial crisis began in the United States, which then spread to several other countries in the world.
Just like other financial crises which of course have causes and consequences that may arise from the existence of the financial crisis, this also raises a number of opinions regarding the causes and consequences of the 2008 financial crisis.
But what caused the 2008 financial crisis to occur? And what are the implications for global finance? One reason is believed to be because at that time, the United States was experiencing a decline in the value of a number of technology stocks.
With the decline in shares, it inevitably makes investors start thinking about ways to divert their investments to other things, which are believed to be more profitable. One of the most popular types of investment chosen by investors at that time was none other than property investment.
One of the reasons why many properties were chosen at that time was none other than because there were still many people who did not own a house, or there were still many people who were constrained by the location of their residence and work location which was too far away, making it possible for many people to think about moving, and start thinking about buying a new home.
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In other words, most US investors think that at that time, property investment would be very profitable. However, it turns out that the reality is not like that,
starting from a housing loan that has a fairly low spec/value (subprime mortgage) which allows everyone to have the opportunity to buy a house, without the need to complete a number of complicated requirements.
One of the subprime mortgage loans in question is a housing loan offered by a US investment bank Lehman Brothers Holding Corporation (LBHI). Where the bank offers credit for all people who do not have experience to make loans (credit).
Not only that, the investment bank also offers the same credit to people who have no income. In other words, with the subprime mortgage, it is possible for this housing credit crisis to occur, which of course has an impact on the financial crisis experienced by the United States of America.
Even with his actions, the investment bank Lehman Brothers Holding Corporation (LBHI) went bankrupt, and was threatened with permanent closure.
If the above explanation explains one of the causes of the financial crisis experienced by the United States in 2008, then for an explanation of some of the impacts/consequences resulting from the 2008 financial crisis, you can refer to the following discussion below.
Financial 2008 Crisis – The consequences of the 2008 financial crisis
One of the effects/consequences of the financial crisis that hit the United States in 2008 can be seen in a number of countries, which indeed depend on the superpower for their economy. One of them, of course, was Indonesia, which at that time carried out many import-export activities with the United States.
However, it is not only that, the financial crisis that occurred in 2008 has also indirectly affected a number of investors from a number of countries who have invested in various institutions and companies in the United States.
One of them is England, where with the 2008 British financial crisis, the country began to be faced with several problems. Among them:
- The increase in inflation is much higher than the increase in wages
- Productivity that doesn’t increase in the slightest
- The property market is getting sluggish
- Government debt that continues to swell, and so on
Meanwhile, for Indonesia, there are several impacts experienced by this country, which resulted from the 2008 financial crisis. Among them:
1.Financial 2008 Crisis – The Weakening of the Rupiah
One of the impacts of the global financial crisis that occurred in 2008 was the weakening of the rupiah. This is because, in every financial crisis, be it a financial crisis that hit Indonesia or the world, Indonesian investors prefer to use safe haven currencies (the currency that is believed to be the safest). Such as the US Dollar (USD), Yen (JPY), to the Swiss Franc (CHF).
In other words, even though the global financial crisis in 2008 involved the United States, which of course made the Dollar weaken, some investors still chose other safe haven currencies, apart from the US Dollar. Thus, the rupiah is increasingly marginalized, and makes its value depreciate (weaker).
2.Financial 2008 Crisis – The decline in the stock price index
In general, financial crises indirectly make repatriated funds (changes from one country’s currency to another country’s currency), usually in large amounts. Where this of course makes the sale of shares and securities take place on a large scale. So that the price of these shares and securities will fall, which will also directly cause the stock price index to decline rapidly.
3.Financial 2008 Crisis – The high price of goods
In addition to the above impacts, another impact that was felt by Indonesia with the occurrence of the 2008 financial crisis was that the prices of a number of commodities/goods became expensive. In particular, the prices of a number of commodities/goods imported from the United States, as well as other countries affected by the global financial crisis.
4.Financial 2008 Crisis – Banks Experience Liquidity Crisis
As a result of the 2008 financial crisis, a number of foreign investors, particularly investors from the United States, began withdrawing funds from a number of banks in Indonesia. So this makes a number of banks in Indonesia, began to experience a liquidity crisis.
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Financial 2008 Crisis – 4 Films That Embrace the 2008 Global Financial Crisis
From the summary of the 2008 financial crisis described above, it can be concluded that the impact of the financial crisis was felt to have had a significant impact on the global economy. Both for the United States itself, and for other countries in the world, Indonesia is no exception. Not even a few of them experienced a severe recession.
For that reason, several film productions in Uncle Sam’s country later raised the incident into a film about the 2008 financial crisis. Where some of these films do tell the story of the events that occurred in 2008, which made a superpower country like the United States of America experience a severe financial crisis, which made the country’s economy almost experience a downturn.
There are at least 4 Hollywood films that address the events of the US financial crisis in 2008. The four films are adapted from true stories, by taking documentation of the 2008 financial crisis taken from various reliable sources.
The 4 films in question include:
- The Big Short. Produced in 2015, and starring a number of well-known actors such as Brad Pit, Ryan Gosling, Christian Bale and also Steve Carell
- 99 Holmes (2014). Tells about a group of people who became victims of the financial crisis that hit the United States in 2008 ago
- Margin Calls. Produced in 2011, this film tells the story of several students from a company’s management division, who find out about the causes and consequences of the 2008 financial crisis.
- Inside Jobs (2010). This is a film about the financial 2008 crisis, which won an Oscar in 2011, with the category as the best documentary film on the 2008 financial crisis.
Financial 2008 Crisis This is an explanation of the 2008 financial crisis and a number of causes and impacts on the global economy. Although the financial crisis was not as severe as the monetary crisis that hit Indonesia in 1998, still, the 2008 financial crisis had a significant impact on the Indonesian economy.