Eurozone Financial Crisis Literature review Example | Topics and Well Written Essays - 750 words - 1

Eurozone Financial Crisis - Literature review Example According to David Brat, the primary causes for the occurrence of the financial crisis is due to a lack of regulation, bad investment decisions, historically low-interest rates and major shocks to the economy (Brat 1). David Brat also stated that the housing crisis is caused by the government by forcing mortgage investors. Nick Timiraos tries to present the viewpoint of Brat in the journal. The paper of Brat also focuses on the largest mortgage lender on the nation which is Countrywide Financial Corporation. The author illustrated that loss in one corner of the mortgage market of the U.S. leads to the cause of the major recession. Moreover, this cause has fallen in the financial system in a broader way. The fresh evidence from the data has been discussed by Joe Parkinson in the journal â€Å"Euro crisis hits emerging Europe. The manufacturing activity of some of the emerging nations such as the Czech Republic, Poland, etc. sunk into the weakest level (Parkinson 1). The paradox of fi nancial crises by Timothy F. Geithner is based on the devastating impact of financial crises (Geithner 1). It has been estimated that in the year 2008, 16% of the wealth of American Household has been lost. Moreover, the rate of unemployment rose to 25%. Geithner tries to present the outcome terrifying autumn of 2008. The foundation of the financial crisis has been effectively incorporated in the three articles to provide vivid knowledge to the readers about the outcome of the crisis.Some of the key issues provided by author Daniel Harari on regarding the cause of financial crisis are misdirected assessment of risks, trade imbalances, and economic divergence. Member of the European Central Bank, Peter Praet states that the collapse of the mortgage market in the United States lead to the start of the Euro financial crisis. Moreover, the author also reveals that financial derivative products are a complex network and held globally. This is the reason which leads to the start of the fi nancial crisis which stated by David Brat and presented on the journal by Nick Timiraos. Two of the key problems of the Euro zone crisis problem are lost competitiveness, deficits and debt.