The financial crisis that erupted in September 2008 following more than a year of financial turmoil has become a global economic crisis. Economic activity in high-income and developing countries alike has fallen abruptly. Unemployment continues to rise throughout the world, housing prices in many countries are still falling, adding to negative wealth effects. Money pumped into the banking sector was intended to help banks make business loans. Government efforts to support banks has failed. There is a noticeable decline in bank originated business loans. They are making fewer business loans, if at all.
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