2008’s global financial crisis – Arab News

2008’s global financial crisis – Arab News

In the current economic downturn caused by the coronavirus pandemic, the worry is that a more divided world will be unable to apply the same remedies.. On Sept. 15, 2008, the collapse of the Lehman Brothers investment bank sent shock waves around the world and turned problems in the US property market into a global financial crisis.. The crisis of 2008-09 brought unprecedented change - and fear - to the world economy.. The stock market caught the contagion, with shares prices falling 50 percent over a few months.. Despite the hundreds of billions of dollars US federal authorities had spent on propping up the system, it turns out nobody was too big to fail.. But the global economy was feeling the shock, and with it the Middle East, which had survived the credit crisis relatively well, thanks mainly to government austerity measures and big financial reserves.. Vital oil prices rose quickly as the global economic situation improved on the back of an economic stimulus package by China.. But in many ways, the Dubai experience encapsulates the global situation since the GFC, and explains why the current crisis could get even more serious.. "The world economy is now collapsing," ran a