Stock Market Crash 2009

The events summarizing in the 2009 crash of the stock markets can be spread over a period of three years of 2008, 2009 and 2010. Starting in 2008, the burst of the housing sector bubble in the United States started the whole downfall of the markets which soon caused other markets to falter and spread outside of the US into the European markets and then into global markets. It is now widely regarded that the cause behind the stock market crash 2009, was the fact that most of the banks and financial institutions that failed in the US were tied up or financially backed by major investment institutions such as AIG, Goldman Sacchs etc. which are primarily European.

As the markets fell, these large institutions that backed major banks and financial markets the world over went into bankruptcy which meant that every institution dependant on them also faced severe backlash both financially and in reputation as well. The effects of the stock market crash 2009, was not as severe in the developing countries but the rates of unemployment, inflation and other associated factors did rise. On a whole, at a global level the effects of the financial turmoil of the first decade in the new millennium did come a close second to the great crash of 1929.

Come 2011, analysts and economists see an increase in stability and a growth in the stock markets to rival the pre 2009 market crash. With the developing markets taking little or no hit from the western market’s crisis, the global market seems ready to bounce back.

Following the stock market crash of 2009, many financial and regulatory policies were brought under review and many proposed changes have been made globally. How these changes affect the market in the future and whether they stem any such incidents from happening again remains to be seen.