Financial Crises
The term financial crisis is applied broadly to a variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth but do not necessarily result in changes in the real economy.
Many economists have offered theories about how financial crises develop and how they could be prevented. There is no consensus, however, and financial crises continue to occur from time to time.
Read more about Financial Crises: History
Famous quotes containing the words financial and/or crises:
“Creditor. One of a tribe of savages dwelling beyond the Financial Straits and dreaded for their desolating incursions.”
—Ambrose Bierce (1842–1914)
“I am not fooling myself with dreams of immortality, know how relative all literature is, don’t have any faith in mankind, derive enjoyment from too few things. Sometimes these crises give birth to something worth while, sometimes they simply plunge one deeper into depression, but, of course, it is all part of the same thing.”
—Stefan Zweig (18811942)