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  • Publicado : 1 de septiembre de 2012
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Hank Paulson the former Treasury Secretary, during the period of 2007 had to face one of themost challenging events in the history of the United States, the financial crisis, this crisis was basically triggered by a liquidity shortfall in the banking system. As we all know and have hearfrom the news this caused the collapse of many large financial institutions, such as Lehman Brothers; the government had to bail out some Banks, and off course this also caused downturns in stock marketsnot Only in the United States but also around the globe.
There is a common idea from many economists that stated and categorized this crisis as the worst financial crisis since the greatdepression, because of this crisis we witness the failure of key businesses, declines in consumer wealth that according to my research are estimated in the trillions of U.S. dollars, and obviously we can’t setaside the significant decline in economic activity. Through out that time to the present year 2012 many Solutions have been implemented both market based and regulatory, but we cannot underestimatethe significant risks that we still have for the next periods.
One of the shocks the really hurt the economy during this time was the collapse of a global housing bubble, this was mainly caused bymany financial institutions that lend people money to buy houses that they could not afforded. A very important aspect to look at is that during this time Banks were not solvent any more and the declinein credit availability hurt and damage the investors confidence therefore causing an impact in the stock market. Economies worldwide slowed during this period as credit tightened and internationaltrade declined.
After this brief description of the economic situation of the country and of the whole world I go back to where I began, Hank Paulson, I’m not really a fan of him but I consider he...
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