Given the tentative state of the global economy in 2009 the decisions made within this General Assembly will establish the future of our nations and citizens become the foundation of arising conflicts and negotiations and redefine our international understanding of the world economy Global leaders must begin to seek preventative measures for future crises while ensuring that the global economy prevails despite the challenges that we face in 2009 Countless countries are falling into recession and unemployment rates are skyrocketing putting the number of job losses in the US at 2 8 million it s highest in 60 years and leaving civilians unprotected unnourished and discontent Therefore while attempting to rectify the economic issues posed by this crisis the international community must also remain aware of the political and social implications of this catastrophe and maintain the social fabric that prevents nations from falling into anarchy The financial crisis started in 2007 in the United States with their housing market The big banks had the belief that if a huge financial crisis were to occur within their institution the government would come to the rescue Because of this major banking corporations started to lower their standards and take on riskier subprime loans In addition to this the housing market started booming because more citizens who were looking for a loan could get one due to the lower standards Subprime loans were now classified as less risky which meant that credit rating companies would classify them as high quality when they actually were not These bad loans were bundled together to create Collateral Debt Obligations CDOs in order to make more profit off of them and make these debts seem as if they were not subprime
