GROUP MEMBERS:
RUKMANI R.
17
JYOTI MITHBAVKAR
25
NILESHWARI N.
27
NITIN ANTHONY
28
SUMEET RAO
39
JASON RODRIGUES
41
ECONOMIC MELTDOWN
SUBPRIME CRISIS Subordinate to primary Started in 2006 2000 – 2005 low interest rates a rising trend
property prices were on
IDEAL SCENARIO
SUB-PRIME CRISIS
VICIOUS CIRCLE OF ECONOMY Inflation
Loss to Investors
Defaults
MBS Value Falls
EFFECT OF SUBPRIME CRISIS
ECONOMIC MELTDOWN
Job Cuts / Layoffs Reduction in Advertisement expenses Reduction in equipment spending Rapid vanishing of new opportunities
INDUSTRIES AFFECTED
FMCG Finance
0% ~ 25-30%
IT ~ 30% Real Estate
~ 7-15 %
IT HAPPENED IN INDIA Slowdown in Jobs Increase in Loan Rates Correction in Real Estate Price
IT HAPPENED IN INDIA Increase in Gold Rates Speed breaker ahead Roller Coaster Ride
FUTURE SCOPE Fall in export volume growth - advanced economies economies
> developing
Negative shock to investment in emerging markets. Global slowdown will reduce demand for commodities and manufactured goods, cutting into export earnings
This KNOT can tighten or losen. We can only infer on it, but we cannot provide a solution.