Canada Finance Blog

The Far Reaching Effects of the 2008 Financial Crisis

The 2008 financial crisis may be over, but its effects are still being felt not only here, but all around the world. The US housing market posted its lowest foreclosure levels this year since the crisis, which means that any gains elsewhere will be steady, but painfully slow.

Across the Atlantic, the European Union is facing an ongoing crisis of its own. Greece is on the verge of a meltdown while Spain’s government is facing a hefty backlash from its citizens because of high unemployment rates which in turn has reduced the country to massive borrowing. Thankfully, the EU has propped up these countries for the benefit of all member states, but a long- term solution is still nowhere to be found.

Japan is also experiencing an economic slowdown. While the country enjoyed an accelerated level of economic growth in the 1990s, today there is a chance of a turnaround because of its saturated financial market. Their own citizens have become wary of extended borrowings which has forced the Japanese government to look elsewhere.

How do these international financial matters affect the average consumer? There’s no way of telling how the pieces will fall exactly, but as with the previous financial crisis, an uncertain future may bring higher prices and more unemployment if these governments again become too complacent.