A Close Look Into the Financial Crisis and Financial Market Volatility-A Risk Management Perspective

Abstract

The global financial crisis which was compared to great depression of the 1930’s surfaced with the subprime mortgage sector in the US in August 2007, this metamorphosed into a global financial crisis in September 2008 followed by the collapse of Lehman Brothers. The present study brings a comparison of the present financial crisis with the great depression of 1930’s and explains how the present crisis is different from great depression. Further the study ponders upon the impact of global crisis on financial markets.

Key Words: Great depression, financial markets, EME”s, CDO’s, Financial Crisis