Analysis with Shaurya

GLOBAL FINANCIAL CRISIS-2008 The financial crisis of 2008 commenced in the USA but the whole world witnessed the crisis.  COMMENCEMENT - 2001 The commencement of the global financial crisis has its roots connected to 2001 when the Federal bank of USA reduced the interest rate from 6.5% to 2.5% in 2001. This led to a gradual increase in borrowings. The easy availability of credit incentivised people to borrow loans and purchase homes. This led to an increase in home prices.  All this started forming a real estate bubble. Even after witnessing the massive increase in real estate prices and borrowings, the federal bank reduced the interest rate to 1% in 2003.  THE FINAL CALL   From 2004, there was a sharp increase in interest rates in the USA. From 2004  fed rates had reached 5.25%which continued till 2007, following this the home prices started declining. Borrowers  were not able to pay the  interest, and many sub prime lenders had to file for bankruptcy.  The

In the first article we have seen that the first oil crisis was caused due to the war between Israel and Arab countries.  Now in the second article We will discuss the second oil crisis. This time there is a war between two nations and also a war within the nation.  So the second oil crisis was caused by   Iranian revolution Iran - Iraq war So this time we have to first develop a base about iranian revolution and also the Iran - Iraq war to clearly understand the oil crisis of 1979. Mark my words, “whenever there will be tensions in the middle-east there will be an oil crisis” . Whether the crisis will be major or minor, this depends on the gravity of the situation caused by tensions among the middle east .  IRANIAN REVOLUTION   The iranian revolution is also known as the Islamic revolution. This revolution was against Shah Mohmad Reza Pahlavi who was an iranian monarch.  Some of the main reasons because of which revolution took place were:

The first oil crisis also known as 1973 oil crisis happened due to the YOM-KIPPUR war which was fought between Israel and Arab countries. So in order to have a clear understanding about the first oil crisis we need to understand the YOM-KIPPUR war. The YOM-KIPPUR war was fought between Israel and Arab countries like Egypt, Syria, Saudi Arabia, Iraq, Libia. Israel was supported by the United states of America and Arab countries were supported by the Soviet Union. So the war was directly between Israel and Arab countries but slowly it turned into an indirect and massive war between two biggest nuclear powers of the world. The war started on 6th october 1973 and continued till 24 october 1973.  The end result was:  Israel won the war. Some political gains to Egypt as it occupied the eastern coast of Suez Canal. After Effects of War - World Wide Recession  After the war ended, OPEC ( organisation of petroleum exporting countries) proclaimed an emba