Global Meltdown Essay

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GLOBAL MELTDOWN: MEASURES TAKEN BY GOVERNMENT OF INDIA AND REGULATORS Minaketan Dash MBA DRIEMS Business School, Tangi, Cuttack- 754022 Mob: +919777122126 Email: GLOBAL MELTDOWN: MEASURES TAKEN BY GOVERNMENT OF INDIA AND REGULATORS Abstract As the term sub-prime refers to not prime or secondary, the meaning of the phrase is the crisis which is caused due to the sub prime causes. Due to the adoption of sub prime policy this crisis is happening. Sub prime lending evolved with the realization of a demand in the marketplace for loans to high-risk borrowers with imperfect credit. In this present study the author has demystified about the impact on global financial market as well as India’s financial market and it’ measures taken by Indian government and by other country.This is a burning economic management problem and the author tried to offer a bird’s eye view of the same in this present problem. Even India has been affected by this crisis ,however it is just the tip of the ice comparison to other country. Key Words: Sub Prime Crisis, Mortgage Crisis, Credit Risk, Asset risk, Liquidity risk, etc. INTRODUCTION The word sub prime crisis refers to a broad concept. Here it is treated as the global financial crisis which has started from US. If we will treat the crisis as the effect which is occurring at present than there are so many causes. It is no the effect of a short term decision. It is the effect of yester causes, which may be high inflation rate which bailed out in a galloping manner. Here the author is concentrating towards business cycle. At the second stage inflation which is the main cause, because in this stage the economy of a country will rise rapidly. But if the inflation rate will rise more than comparison to the level of nations GDP growth, than

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