Ayush Gupta(10bsp1141)

1.Subprime Crises-

The global financial crisis clearly started with problems in the U.S. subprime sector and spread
across the world from there. But was the direct exposure of foreigners to the U.S. financial system a
key driver of the crisis, or did other factors account for its rapid contagion across the world? To
answer this question, we assessed whether countries that held large amounts of U.S. mortgage-
backed securities (MBS) and were highly dependent on dollar funding experienced a greater degree
of financial distress during the crisis. We found little evidence of such “direct contagion” from the
United States to abroad.

The US subprime mortgage crisis was one of the first indicators of the 2007–2010 financial crisis,
characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting
decline of securities backing said mortgages.

Approximately 80% of U.S. mortgages issued to subprime borrowers were adjustable-rate

mortgages.After U.S. house prices peaked in mid-2006 and began their steep decline thereafter,
refinancing became more difficult. As adjustable-rate mortgages began to reset at higher rates,
mortgage delinquencies soared. Securities backed with mortgages, including subprime mortgages,
widely held by financial firms, lost most of their value. Global investors also drastically reduced
purchases of mortgage-backed debt and other securities. In addition to causing increased
delinquencies and foreclosures in subprime mortgages (along with all other types of mortgages
including Alt-A and conforming), the 2007–2010 financial crisis caused a decline in the capacity
and willingness of the private financial system to support lending, tightening credit around the
world and slowing economic growth in the U.S. and Europe.

The crisis can be attributed to a number of factors pervasive in both housing and credit markets,
factors which emerged over a number of years. Causes proposed include the inability of
homeowners to make their mortgage payments (due primarily to adjustable-rate mortgages
resetting, borrowers overextending, predatory lending, and speculation, overbuilding during the
boom period, risky mortgage products, high personal and corporate debt levels, financial products
that distributed and perhaps concealed the risk of mortgage default, bad monetary and housing
policies, international trade imbalances, and inappropriate government regulation. Three important
catalysts of the subprime crisis were the influx of moneys from the private sector, the banks entering
into the mortgage bond market and the predatory lending practices of the mortgage lenders,
specifically the adjustable-rate mortgage, that mortgage lenders sold directly or indirectly via
mortgage brokers.
2.Fuel Economy

Fuel usage in automobiles refers to the relationship between distance traveled by an automobile
and the amount of fuel consumed. There are no quantities or units for fuel usage defined in the
International Standard ISO 80000 Quantities and Units, so the nationally-defined reciprocal
quantities fuel economy and fuel consumption are used in this article.

The two most common ways to measure automobile fuel usage are:

Fuel consumption

the amount of fuel used per unit distance; most commonly, litres per 100 kilometres
(L/100 km). This measure is used in Europe, China, Canada, Australia and New Zealand.
Lower values mean better fuel consumption: you use less fuel to travel the same distance.

Fuel economy

the distance traveled per unit of fuel used; used in market areas affecting the largest number of
vehicles worldwide. Most commonly miles per gallon (mpg) or kilometres per litre (km/L). This
measure is used in the UK, U.S. (mpg) and Japan, Korea, India, Pakistan, parts of Africa, The
Netherlands, Denmark and Latin America (km/L). If mpg is used, it is important to know which gallon
is being referred to; the US gallon or the imperial gallon. The imperial gallon is about 20% larger than
the U.S. gallon. Higher values of mpg means travelling further for the same amount of fuel.

Gallons per mile

Gallons per mile (GPM) is a way of measuring the fuel efficiency of a vehicle. It conveys the amount
of fuel that will be used more intuitively than Miles per gallon, which can be misleading. For
example, many people incorrectly believe that the improvement from 34 to 44 MPG saves more fuel
than the improvement from 15 to 19 MPG because they look at the difference (or percentage change)
between MPG levels. The improvement of 15 to 19 MPG change saves about twice as much fuel as
the improvement of 34 to 44 MPG over a given distance of driving. "Gallons per 100 miles" (GPHM)
corrects these illusions. When comparing the fuel savings of different vehicles, GPHM can be
subtracted. MPG cannot.

Because using "gallons per mile" yields small numbers, it is useful to use a longer distance as the base, such as
"gallons per hundred miles" (GPHM) or "gallons per 10,000 miles." Many countries use a measure of volume
over distance to measure fuel consumption.
3.Dotcom bubble

The dot-com bubble was a stock market bubble which popped to near-devastating effect in 2001. It
was powered by the rise of Internet sites and the tech industry in general, and many of these
companies went under or learned some valuable lessons when the bubble finally burst. Many
investors lost substantial sums of money on the dot-com bubble, helping to trigger a mild economic
recession in the early 2000s. Analysts noted that some companies did not seem to be sobered by the
burst of the bubble when web 2.0 sparked a fresh round of investing and speculation around 2004.

Several factors combined to cause the dot-com bubble, which is usually defined as the period
of investment and speculation in Internet firms which occurred between 1995 and 2001. 1995
marked the beginning of a major jump in growth of Internet users, who were seen by
companies as potential consumers. As a result, numerous Internet start-ups were birthed in
the mid to late 1990s. These companies came to be referred to as “dot-coms,” after the .com
in many web addresses.

Many of these companies engaged in unusual and daring business practices with the hopes of
dominating the market. Most engaged in a policy of growth over profit, assuming that if they
built up their customer base, their profits would rise as well. Many dot-coms also expended a
great deal of energy in market domination, attempting to corner the bulk of customers for a
particular need.

Investors responded to daring business practices with money; lots of it. The American stock
market rose dramatically during the dot-com bubble, with hundreds of companies being
founded weekly, especially in tech hot spots like the Silicon Valley near San Francisco. Many
people associate lavish lifestyles with the dot-com bubble, since companies regularly
sponsored exclusive events filled with fine food and entertainers. At conferences and events
focusing on the tech industry, the combined entertainment costs were sometimes counted in
hundreds of thousands of dollars.

Unfortunately for many companies and investors, the growth of the tech sector proved to be
illusory. Numerous high profile court cases targeted tech companies for unscrupulous
business practices including borderline monopolies, and the stock market began to tumble
down in a serious correction. A decline in business spending combined with market
correction to deal a serious financial blow to many dot-coms, and tech companies began to
fold, one by one.

The issues of the dot-com bubble were also compounded by outside factors, like a rise in
outsourcing which led to widespread unemployment among computer developers and
programmers. The market also took a major downturn in the wake of terrorist attacks in the
United States in 2001, and companies who had engaged in shoddy or questionable
bookkeeping were essentially caught with their pants down in a series of government
investigations. The loss of consumer faith in the tech industry also depressed earnings for
dot-coms.
4.Developed , developing, underdeveloped economies.

HDI- The Human Development Index (HDI) is a composite statistic used to rank countries by level of
"human development" and separate developed (high development), developing (middle
development), and underdeveloped (low development) countries. The statistic is composed from
data on life expectancy, education and per-capita GDP (as an indicator of standard of living)
collected at the national level using the formula given in the Methodology section below. There are
also HDI for states, cities, villages, etc. by local organizations or companies.

Australia -0.937

Egypt-0.620

Zimbabwe-0.140

GDP- The gross domestic product (GDP) or gross domestic income (GDI) is the amount of goods and
services produced in a year, in a country. It is the market value of all final goods and services made
within the borders of a country in a year. It is often positively correlated with the standard of living,
alternative measures to GDP for that purpose.

Australia-1.105 trillion us dollars

The Australian economy is dominated by its service sector, representing 68% of Australian GDP. The
agricultural and mining sectors (10% of GDP combined)account for 57% of the nation's exports.

Egypt-162.283 billion us dollars

Zimbabwe-3.418 billion us dollars

The economy of Zimbabwe has shrunk significantly from economic mismanagement after 2000,
resulting in a desperate situation for the country and widespread poverty from among others 94%
unemployment.The participation from 1998 to 2002 in the war in the Democratic Republic of the
Congo set the stage for this deterioration by draining the country for hundreds of millions of dollars.
Hyperinflation has been a major problem from about 2003 to April 2009, when the country
suspended its own currency. The economy deteriorated from one of Africa's strongest economies to
the world's worst.

Inflation growth rate-

In economics, inflation is a rise in the general level of prices of goods and services in an economy
over a period of time. When the general price level rises, each unit of currency buys fewer goods and
services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss
of real value in the internal medium of exchange and unit of account in the economy.A chief
measure of price inflation is the inflation rate, the annualized percentage change in a general price
index (normally the Consumer Price Index) over time.

Australia-3.10 in June 2010

Egypt-10.7

Zimbabwe-5.1
Employment Rate-

Employment is a contract between two parties, one being the employer and the other being the
employee. An employee may be defined as: "A person in the service of another under any contract
of hire express or implied, oral or written, where the employer has the power or right to control and
direct the employee in the material details of how the work is to be performed."

Australia- Rose by 25,700 to 11,339.400

Unemployment Rate-
Unemployment as defined by the International Labour Organization occurs when people are without
jobs and they have actively looked for work within the past four weeks.The unemployment rate is a
measure of the prevalence of unemployment and it is calculated as a percentage by dividing the
number of unemployed individuals by all individuals currently in the labour force.

Australia-Remained at 5.2%

Egypt-9.4%

Zimbabwe-95%