1. Sub Prime Crisis… … and its rippling effects on the global economy

5. Sequence of events Source: Sub Prime Crisis - Presentation by Astha - May 2008

13. Domino Effect across the World The world market capitalisation has fallen by 20% since March 2007 and by 31% since December 2007. Year to date, the Indian and Chinese markets have been the worst performers amongst the larger indices

17. Some quotes on the crisis “ We were at the brink of something that would have made anything that's happened in financial history look pale. We were very, very close to a system that was totally dysfunctional and would have not only gummed up the financial markets but gummed up the economy in a way that would take us years and years to repair” – Warren Buffet “ There could be a lot more bank closures in the coming months which could create significant investment opportunities. As many as thousand banks could go belly up” – Wilbur Ross “ It is quite likely that the current synchronized global economic boom and the universal, all encompassing asset bubble will lead to a colossal bust” – Dr. Marc Faber “ The money markets have completely broken down, with no trading taking place at all. There is no market any more. Central banks are the only providers of cash to the market, no one else is lending” – Christopher Reiger (Dresdner Kleinwort) [email_address]