The Financial Crisis and Germany

Paper Summary:

The paper explores the origins of the financial crisis and shows how it is a crisis of the system at the world level. The paper analyzes the consequences of the crisis on banks profitability, international financial markets, the economic sector, the labor market. The paper then focuses on the consequences of the crisis in Germany and reveals that the whole German economy was hit particularly hard by the crisis. The paper concludes that, nevertheless, Germany has reacted well with financial system rescue and economy stimulus packages that have limited confidence crises and a collapse of the whole German system.

Summary:
Introduction
The Roots of the Crisis
Consequences of the Crisis
Consequences of the Crisis in Germany
The German Crisis Management

From the Paper:

"The triggering element of the present financial crisis was the real-estate crisis in the United States. The crisis began in a certain indifference in 2006, but then it reached its peak during the second semester of 2008 when we observed, day after day, a fall in prices of shares, simultaneously in all the financial centres and activities sectors, along with bankruptcies of certain prestigious banking institutions, as well as serious and expensive internal dysfunctions in many others. These events have led to unusual interventions from the public authorities, interventions which became more and more massive and coordinated with a view to contain a crisis of confidence in the functioning of the financial systems and to limit the gravity of an economic recession in developed countries with its predictable social consequences."

Sample of Sources Used:

• Abramson J (2009), " Germany to go deeper into debt as recession widens", Deutsche Welle
• Artus P, Betbeze J-P, de Boissieu C and Capelle-Blancard G (2008), " La crise des subprimes ", Conseil d'Analyse Economique, 284p.
• Asmussen J (2009), " Mastering Global Financial Crises: A German Perspective"
• Baumann E, Donnebrink E and Kastrop C (2008), " A concept for a new budget rule for Germany
• Beauvieux J (2009), " La Coface devient une agence de notation ", E24

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