Perspectives of Innovations, Economics and Business

  Previous Article | Back to Volume | Next Article
  Abstract | References | Citation | Download | Preview | Statistics
Volume 14
Issue 1
Online publication date 2014-02-06
Title The American real estate bubble - Trigger for the biggest financial crisis in the last century
Author Vasilka Gaber, Stevan Gaber, Ilija Gruevski
In the last years the world was faced with the worst economic crisis since the 1929-33 period which led to a significant decline in the global economy, tumultuous aftershocks of the financial and the real sector, significant shaking of confidence in financial institutions and the stability of the global financial system. This paper focuses on the crisis that began in the summer 2007 in U.S. when increased delinquency on the secondary market for mortgages created turbulence in the secondary market of securities covered by residential credits. The turbulence was then expanded to other markets securities, money market, financial institutions, with knock-on effects that are transmitted to all market segments, by involving the real sector. Under its global effect, this crisis was characterized as comprehensive, complex and global. This paper intends to detect the origin of this crisis and to analyze the potential government mistakes that led to the current world economic state.
Blinder A., 2009. “Talking about monetary policy: the virtues (and vice?) of central bank communication,” BIS Working Papers 274, Bank for International Settlements

Bernanke B., 2010. “Monetary policy and the housing bubble”, Speech at the AEA meetings. Available at:

Dani R., 2009. “Growth after the crisis,” CEPR Discussion Papers 7480, C.E.P.R. Discussion Papers

Fiti T., 2009. “Fenomenologija na ekonomskite krizi”, Ekonomski fakultet, Skopje
Krugman P., 2009a. “And I was on the grassy knoll, too” (blog post), Available at:

Krugman P., 2009. “How did economists get it so wrong?” New York Times, September 6, (Internet Edition)

Mah Hui Lim, Chin Lim, 2010. Nowhere to hide: The great financial crisis and challenges for Asia, ISEAS Publishing

Petkovski M., 2009. “Globalnata finansiska kriza vo 2008 godina-pricini i posledici”, Trud publikuvan vo Zbornik na trudovi na MANU, posveten na akademik Ksente Bogoev, MANU

Stark J., 2008. Monetary, fiscal and financial stability in Europe. BIS Review 142
Stiglitz JE, 2008. “Markets can’t rule themselves”, Newsweek, December 31

Keywords Financial crises, regulation, securities, real estate markets, government
Pages 21-27
Download Full PDF Download
  Previous Article | Back to Volume | Next Article
Search in articles
Journal Published articles
PIEB 611
Journal Hits
PIEB 1906120
Journal Downloads
PIEB 29179
Total users online -