Major Developments Major Developments by Calendar Year

Popular economists have declared the financial crisis of 2007–2009, the worst financial crisis since the one pertained to the Great Depression of the 1930s. It is responsible for the failure of important businesses, downfall in consumer wealth that is evaluated in the trillions of U.S. Dollars, acquisition of important financial commitments by government, and critical decline in economic activity. There are many causes for the economic crisis with varying consequence. With the increase in loan losses and the fall of Lehman Brothers on September 15, 2008, a big alarm broke out on the inter-bank loan market. The banks of United States and Europe experienced huge losses, faced bankruptcy and this resulted in massive public financial assistance. The effects of global recession are, sudden drop in the international trade, increasing unemployment and increase in prices of goods. Several economists have supposed that recovery from recession may not appear until 2011. Growth in financial or material demand, improper regulation and administration and increasing irregularity contributed to the economic crisis which in turn led to excessive increase of resource prices. It had a severe impact on the world. There is drop in the world stock markets, large financial institutions have collapsed, and even the wealthiest nations had introduced rescue packages to provide guarantee to their financial systems.