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The financial crisis: A year on

The financial crisis: A year on

Although world economies seem to be recovering from the crisis, officials warn that take time before normalcy is restored.


September 13, 2009 12:17 by

According to reports, 107 banks have collapsed in the US since last September, out of which 92 failed in 2009. An average of 10 banks has declared bankruptcy every month this year.

“We are seeing the third wave of the crisis, which is rising levels of unemployment,” Strauss-Kahn told reporters last week.

Developing countries like Nigeria, Trinidad, Venezuela and Indonesia, which were previously unaffected by the crisis, are showing signs of distress.

“I worry that as the financial sector emerges from crisis, a business as usual mentality may prevent serious progress from being made,” Strauss Kahn said.

According to former US Federal Reserve Chairman Alan Greenspan, another financial crisis is inevitable.  “The crisis will happen again but it will be different,” he told the BBC recently.

“That is the unquenchable capability of human beings when confronted with long periods of prosperity to presume that that will continue,” he said.

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