Every CAT aspirant should know what is ‘Subprime Crisis’: the major cause for the downfall of US share market which can become the cause of another Great Depression. Though after the fall of major investment banking firms such as Lehmann Brothers, Meryll Lynch etc US govt has alloted the bailout of $700 billion dollars (65% of Indian GDP or 103 times the GDP of Namibia), still the crisis hasn’t reached to its peak stage. BTW, my main motive is that you should be aware of this topic in detail as it will definitely gonna be a very hot topic of GD panelist.

I am not writing myself on it, rather I am giving you the link to read more because its better you read that is coming directly from experts. Click the undermentioned link.

Subprime mortgage crisis

Here’s a brief description of

THE GREAT DEPRESSION
The worldwide economic downturn that began in 1929 and lasted till the late 1930’s. It was the most
severe depression ever experienced by the industrialized economies of the West, which brought about
drastic changes in economic institutions, macroeconomic policies, and economic theory. The depression
started in the United States, but caused drastic decline in output, severe unemployment, and acute deflation in almost every country of the world. The social and cultural effects of the downturn were no
less staggering, especially in the United States, where the harshest effects of the depression were felt
after the Civil War.
The worst hit were the United States and Europe while milder impacts of the depression were felt in
Asia, especially Japan and the South Americas.
The worst depression faced by the World economy was a consequence of decline in consumer demand,
financial panic, and misguided government policies that caused economic output to fall in the United
States. The gold standard, which was used to fix currency exchange rates between the countries,
played a key role in transmitting the economic downturn to countries other than the United States. The
recovery from the Great Depression was spurred largely by the abandonment of the gold standard and
the ensuing monetary expansion. The economic impact of the Great Depression was enormous, including
both extreme human suffering and profound changes in economic policy .

Read both of them carefully and analyse the difference.

Similar Posts:

• World War I (Aug 14, 1914 to Nov 11, 1919) (GA)
• Economic Times Awards 2009
• Gupta Empire – (GA)
• IMPORTANT INTERNATIONAL BOUNDARIES (GA)
• Vedic Period (GA)

I am the founder of this site. I started this site with a single motive of providing MBA aspirants every knowledge or material which they cannot easily get on Internet. My strength is my Technical Gyaan in combination with all the Gyaan I acquire by preparing for IIMs....

Gaurav

View all posts by Gaurav
Gauravs website