Financial crisis in Kazakhstan

Introduction The purpose of this paper is to report 2007-2009 ball-shaped m onetary crisis reasons and define its consequences for Kazakhstan economy. From the rattling beginning of year 2007 global economies confront series major economic and fiscal problems. Many economists consider events started in 2007 as the worst financial crisis since the Great slack of the thirty-something and the recentst phase of the developing of financial marts under the radical financial deregulation process that began in the late seventies.Since the Great Depression in 1930s almost everyone believed that financial arkets need to be regulated to be stable, avoid subterfuge and manipulation. The strict financial regulatory re importants was created by US g everyplacenment to harbor the country from mentioned dangers. It worked effectively through the 1960s. stinting and financial turbulence in the 1970s and early 1980s led to both a paradigm and a form _or_ system of government regime shift. Efficient financial market possible action and mod classical macro opening replaced the existing system of tight financial regulation. Such developments facilitated the transition to a new globally-integrated deregulated neoliberal capitalism. As a head the world faced the threat of score collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets well-nigh the world. In legion(predicate) areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment.The crisis play a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity wind to the 2008-2012 global recession and contributing to the European sovereign-debt crisis. 2. Reasons Attempting to identify the factors that caused the global financial crisis is a discussion which has been raging over the shoemakers last few years, with s ome people pointing to one area, and others feeling at other guilty ones for what has been one of the most devastating and advanced events of the economy in recent memory.The global financial crisis might seems to be that it hasnt touched ordinary people, but this certainly isnt the case, as regular workers in some of the large companies that have been bankrupted have become unemployed, and cities and towns across he United States have been decimated if a major employer in the area has done for(p) out of business. There are a number of factors which are generally pointed to when looking at the reasons that triggered the global financial crisis.One of the of import reasons which is often pointed to as one of the main triggers of the global financial crisis are the owe derivative products, where risky mortgages were packaged with to a greater extent traditionally secure mortgages and sold to corporal investors and other banks as secure investment funds products. This packaging of mortgages is generally ccepted to have cloak the real risks that were linked with such a product, which gradually grew as lending criteria were loosened in the runner five or six years of the twenty first century. Between 1997 and 2006, the price of the typical American house increased by 124%.During the both decades ending in 2001, the national normal home price ranged from 2. 9 to 3. 1 times median household income. This dimension rose to 4. 0 in 2004, and 4. 6 in 2006. This housing bubble resulted in quite a few homeowners refinancing their homes at lower interest rates, or financing consumer spending by aking out split second mortgages secured by the price appreciation. By family 2008, average U. S. housing prices had declined by over 20% from their mid-2006 peak. Easy credit, and a whimsey that house prices would continue to appreciate, had encouraged many subprime borrowers to obtain adjustable-rate mortgages.