Nama : Kurnia Yusti Febrianingsih

NIM : 2030603187
Kelas : SPS 6
Mata Kuliah : Bahasa Inggris Bisnis dan Perbankan

Global Economic Crisis

In 2008 a great economic crisis led to a recession of the economies around the world. What
began as a credit crisis turned out to be the biggest banking crisis since the Great Depression.
Although the implications of the crisis are most severe in the USA, banks and insurance companies
all over the world have collapsed and governments have come to the rescue by lending them
money.

The American government wants to save the global financial system with 700 b dollars.
With this money, it wants to restore trust in America’s banking system.

Causes of the crisis

There are many reasons for the current crisis.

Governments, especially the American government, did not control the banking sector
enough and let the banks give loans to people without asking for securities. Many companies,
banks, and firms have become too greedy and wanted to make a lot of quick money. Since the
1970s too many goods and services have been produced.

Background
The Post-war Period 1945 – 1975

After World War II economies around the world grew very quickly. Europe and Japan were
being rebuilt. Workers received higher wages. This period of growth came to an end in the mid-
1970s. Developing nations like Brazil or the tiger states of Asia (Taiwan, South Korea, Singapore,
and Hong Kong) started producing more and more, which led to overproduction. In the industrial
countries, consumers were not able to buy as much as they did before because prices and inflation
went up. On top of all this, a dramatic energy crisis and the rise in oil prices led to a worldwide
recession in the mid and late 1970s.
Globalization

At the beginning of the 1980s companies and firms in industrialized nations began looking
for new ways of making more money. They started transferring their companies to Asia where
they hired cheaper workers and had access to less expensive raw materials. Because of low labor
costs they could produce more cheaply and make more profit.

The economic bubble

In the last 15 years more and more investors and companies wanted to make larger profits.
They bought real estate, stocks at high prices and sold them at even higher prices in the hope of
making quick money. When prices got too high nobody bought stocks and real estate anymore.
Prices fell and as time went on they became worthless.

Such an economic bubble burst in Asia between 1997 and 1998. It led to the economic
collapse of some countries, including Japan. Within a few weeks, stock market prices fell and
nobody bought stock or real estate anymore. Foreign investors pulled out their money out of Asia.

(Sumber : https://www.text.co.id/teks-bahasa-inggris-tentang-ekonomi/)

Komentar :

The comments that I can convey are : The global economic crisis that occurred in 2008
was a great economic crisis and caused an economic recession throughout the world. And there
are various reasons for this crisis as well as the government, especially the American government
which does not adequately control the banking sector and allow banks to lend to people without
asking for securities. In the early 1980s companies and companies in industrialized countries
started looking for new ways to make more money.

And there are various causes in this global economic crisis and Some of the causes are
excessive state debt, high inflation rate where the level of currency circulation continues to
increase accompanied by high demand and has an impact on rising goods prices, and stalled
economic development. The impact is that many companies lay off their employees and the
poverty rate will also increase because many people no longer have income.
 There are also things you can do personally to Minimize The Global Crisis Increase the
use of domestic production, take advantage of international trade opportunities, avoid buying
luxury items, especially using the credit system, adjust investment to current economic conditions.