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100-604: Mazabuka is a town in the Southern Province of Zambia . It is the capital of Mazabuka District , one of the thirteen administrative units in the Southern Province. The name Mazabuka originates from a Tonga local language word "kuzabuka" which means "To cross over the river". The name should have been "mwazabuka" which translates to "you have crossed". However, due assimilation, the name became "Mazabuka" which nonetheless translates to "you have crossed". It

200-496: A " perfect storm " that triggered the Great Recession , which lasted from late 2007 to mid-2009. The financial crisis began in early 2007, as mortgage-backed securities (MBS) tied to U.S. real estate , as well as a vast web of derivatives linked to those MBS, collapsed in value . Financial institutions worldwide suffered severe damage, reaching a climax with the bankruptcy of Lehman Brothers on September 15, 2008, and

300-662: A country (such as the US) running a current account deficit also have a capital account (investment) surplus of the same amount. Hence large and growing amounts of foreign funds (capital) flowed into the U.S. to finance its imports. All of this created demand for various types of financial assets, raising the prices of those assets while lowering interest rates. Foreign investors had these funds to lend either because they had very high personal savings rates (as high as 40% in China) or because of high oil prices. Ben Bernanke referred to this as

400-450: A further collapse, encourage lending, restore faith in the integral commercial paper markets, avoid the risk of a deflationary spiral , and provide banks with enough funds to allow customers to make withdrawals. In effect, the central banks went from being the " lender of last resort " to the "lender of only resort" for a significant portion of the economy. In some cases the Fed was considered

500-495: A global economic shock, resulting in several bank failures . Economies worldwide slowed during this period since credit tightened and international trade declined. Housing markets suffered and unemployment soared, resulting in evictions and foreclosures . Several businesses failed. From its peak in the second quarter of 2007 at $ 61.4 trillion, household wealth in the United States fell $ 11 trillion, to $ 50.4 trillion by

600-483: A housing bubble to replace the Nasdaq bubble". Moreover, empirical studies using data from advanced countries show that excessive credit growth contributed greatly to the severity of the crisis. Additional downward pressure on interest rates was created by rising U.S. current account deficit, which peaked along with the housing bubble in 2006. Federal Reserve chairman Ben Bernanke explained how trade deficits required

700-514: A net-exporter of maize to food insecure neighboring countries, such as Zimbabwe and Malawi which have been hit more severely by the weather. As of 2004, the province had 995 basic schools, 45 high schools and the number of school children out of school in ages between 7 and 15 stood at 995. The unemployment rate was 7 per cent and the general unemployment rate for youth stood at 6 per cent as of 2008. The province had 50 doctors as of 2005. There were 344 Malaria incidence for every 1,000 people in

800-821: A range of measures intended to preserve existing jobs and create new ones. Combined, the initiatives, coupled with actions taken in other countries, ended the worst of the Great Recession by mid-2009. Assessments of the crisis's impact in the U.S. vary, but suggest that some 8.7 million jobs were lost, causing unemployment to rise from 5 percent in 2007 to a high of 10 percent in October 2009. The percentage of citizens living in poverty rose from 12.5 percent in 2007 to 15.1 percent in 2010. The Dow Jones Industrial Average fell by 53 percent between October 2007 and March 2009, and some estimates suggest that one in four households lost 75 percent or more of their net worth . In 2010,

900-545: A really bad economy. In other words, the borrowers did not cause the loans to go bad-it was the economy. Between 1998 and 2006, the price of the typical American house increased by 124%. During the 1980s and 1990s, the national median home price ranged from 2.9 to 3.1 times median household income. By contrast, this ratio increased to 4.0 in 2004, and 4.6 in 2006. This housing bubble resulted in many homeowners refinancing their homes at lower interest rates, or financing consumer spending by taking out second mortgages secured by

1000-404: A significant increase in subprime lending . Subprime had not become less risky; Wall Street just accepted this higher risk. Due to competition between mortgage lenders for revenue and market share, and when the supply of creditworthy borrowers was limited, mortgage lenders relaxed underwriting standards and originated riskier mortgages to less creditworthy borrowers. In the view of some analysts,

1100-489: A single pool from which specific securities draw in a specific sequence of priority. Those securities first in line received investment-grade ratings from rating agencies. Securities with lower priority had lower credit ratings but theoretically a higher rate of return on the amount invested. By September 2008, average U.S. housing prices had declined by over 20% from their mid-2006 peak. As prices declined, borrowers with adjustable-rate mortgages could not refinance to avoid

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1200-551: A subsequent international banking crisis . The prerequisites for the crisis were complex. During the 1990s, the U.S. Congress had passed legislation intended to expand affordable housing through looser financing. In 1999, parts of the Glass–Steagall legislation (passed in 1933) were repealed , permitting institutions to mix low-risk operations, such as commercial banking and insurance , with higher-risk operations such as investment banking and proprietary trading . As

1300-715: Is a school for children with disabilities and is located on the outskirts of the town. It is operated by the Mazabuka Association for the Disabled. Mazabuka is home to (a) Mazabuka Sugar Hospital for the management and staff of Zambia Sugar Plc and (b) Mazabuka General Hospital for the general public. In September 2006 following a positive feasibility study, Albidon Limited of Australia obtained permits and approvals to mine Nickel in Mazabuka. The initial project development required more than U$ 180 million, which

1400-467: Is also home to the "Sweetest Town in Zambia", Mazabuka, where sugarcane farming and sugar processing are a major business. The total area of crops planted during the year 2014 in the province was 360,160.32 hectares which constituted 18.98% of the total area cultivated in Zambia. The net production stood at 688,122 metric tonnes, which formed 16.89% of the total agricultural production in the country. Sorghum

1500-704: Is believed that the name was coined after the Tonga people crossed the Kafue River near a place called Nanga during their migrations. The town is located in Mazabuka District , in Zambia's Southern Province . The town lies on the south east edge of the Kafue Flats wetland, along the Lusaka–Livingstone Road . It is approximately 135 kilometres (84 mi), by road, southwest of Lusaka ,

1600-554: Is expected to generate 3,300t of Ni in 2020, which is anticipated to reach 4,000t in 2021. Although it is billed as a nickel project, Munali also contains commercial quantities of copper , cobalt and platinum group metals (PGMs). See Also : Mining in Zambia Southern Province, Zambia The Zambezi River is the province's southern border, and Lake Kariba , formed by the Kariba Dam , lies along

1700-480: Is home to two well known day schools, among others,in the province. Both are grant aided schools run by the Roman Catholic missionaries. These are St Edmunds Secondary School and Mazabuka Girls Secondary School. The two have the highest enrollment of grade eights(G8) from all the primary schools. Musikili Primary School is a private boarding school for children between 5 and 13 years old. Flamboyant School ,

1800-706: Is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability. In the table, the names of emerging and developing economies are shown in boldface type, while the names of developed economies are in Roman (regular) type. The twenty largest economies contributing to global GDP (PPP) growth (2007–2017) The expansion of central bank lending in response to

1900-567: Is received during December. The annual rainfall is more than 700 mm (28 in) in the region. Lake Kariba is the manmade lake in Africa and the second largest manmade lake in the world and it stretches along the Southern border of the province. As per the 2010 Zambian census , Southern Province had a population of 1,589,926 accounting to 12.08% of the total Zambian population of 13,092,666. There were 779,659 males and 810,267 females, making

2000-582: The Dodd–Frank Wall Street Reform and Consumer Protection Act was passed, overhauling financial regulations. It was opposed by many Republicans , and it was weakened by the Economic Growth, Regulatory Relief, and Consumer Protection Act in 2018. The Basel III capital and liquidity standards were also adopted by countries around the world. The recession was a significant factor in the 2010s European debt crisis . The crisis sparked

2100-654: The Federal Reserve ("Fed") lowered the federal funds rate from 2000 to 2003, institutions increasingly targeted low-income homebuyers, largely belonging to racial minorities , with high-risk loans; this development went unattended by regulators. As interest rates rose from 2004 to 2006, the cost of mortgages rose and the demand for housing fell, causing property values to decline. In early 2007, as more U.S. mortgage holders began defaulting on their repayments, subprime lenders went bankrupt, culminating in April with

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2200-474: The Federal Reserve lowered the federal funds rate target from 6.5% to 1.0%. This was done to soften the effects of the collapse of the dot-com bubble and the September 11 attacks , as well as to combat a perceived risk of deflation . As early as 2002, it was apparent that credit was fueling housing instead of business investment as some economists went so far as to advocate that the Fed "needs to create

2300-672: The Great Depression . This matters for credit decisions. A homeowner with equity in her home is very unlikely to default on a car loan or credit card debt. They will draw on this equity rather than lose their car and/or have a default placed on their credit record. On the other hand, a homeowner who has no equity is a serious default risk. In the case of businesses, their creditworthiness depends on their future profits. Profit prospects look much worse in November 2008 than they did in November 2007 ... While many banks are obviously at

2400-689: The Great Recession , which, at the time, was the most severe global recession since the Great Depression. It was also followed by the European debt crisis, which began with a deficit in Greece in late 2009, and the 2008–2011 Icelandic financial crisis , which involved the bank failure of all three of the major banks in Iceland and, relative to the size of its economy, was the largest economic collapse suffered by any country in history. It

2500-2224: The Kafue Flats in the north, the Zambezi and Batoka Gorges in the south, Chobe National Park in Botswana , Kafue National Park in Zambia, and Lake Kariba on the Zimbabwe border. Tourism is a large and growing part of the Zambian economy, contributing to 7% of GDP in 2005 and receiving more than 800,000 visitors per annum by 2007. The Lwiindi Gonde festival celebrated in Monze District by Tonga tribe during July, Maliko Malindi Lwiindi festival celebrated in Sinazongwe District by Tonga tribe during August, Musumu Muyumu festival celebrated in Kalomo District by Tonga tribe during August, Sikaumba festival celebrated in Namwala District by Ila tribe during August, Lukuni Luzwa Buuka festival celebrated in Kalomo District by Toka Leya tribe during August, Kasanga Makonda festival celebrated in Kazungula District by Nkoya tribe during September, Guta Bweenza Bwe festival celebrated in Kazungula District by Tonga tribe during September, Shimunenga festival celebrated in Namwala District by Ila tribe during October, Chungu festival celebrated in Kalomo District by Tonga tribe during October, Maanzi Aabila Lwiindi festival celebrated in Kalomo District by Tonga tribe during October, Lwiindi Sekute festival celebrated in Kazungula District by Toka Leya tribe during October, Bagande festival celebrated in Siavonga District by Tonga tribe during November, Koombaze Kamakonde festival celebrated in Kalomo District by Tonga tribe during November, Bene Mukuni festival celebrated in Kazungula District by Toka Leya tribe during July & December are

2600-561: The United States House Committee on Financial Services held a hearing, at the urging of the administration, to assess safety and soundness issues and to review a recent report by the Office of Federal Housing Enterprise Oversight (OFHEO) that had uncovered accounting discrepancies within the two entities. The hearings never resulted in new legislation or formal investigation of Fannie Mae and Freddie Mac, as many of

2700-414: The global financial crisis ( GFC ), was the most severe worldwide economic crisis since the 1929 Wall Street crash that began the Great Depression . Causes of the crisis included predatory lending in the form of subprime mortgages to low-income homebuyers and a resulting housing bubble , excessive risk-taking by global financial institutions , and lack of regulatory oversight, which culminated in

2800-501: The mortgage-backed security and the collateralized debt obligation that were assigned safe ratings by the credit rating agencies . In effect, Wall Street connected this pool of money to the mortgage market in the US, with enormous fees accruing to those throughout the mortgage supply chain , from the mortgage broker selling the loans to small banks that funded the brokers and the large investment banks behind them. By approximately 2003,

2900-779: The teak forests around Mulobezi which once supported a commercial timber industry and for which the Mulobezi Railway was built. The provincial capital is Choma. Until 2011, the provincial capital was Livingstone City . The Batonga are the largest ethnic group in the Province. A rail line and the Lusaka-Livingstone road form the principal transport axis of the province, running through its centre and its farming towns: Kalomo , Choma , Pemba , Monze , and Mazabuka . In addition to maize, other commercially important activities include sugar cane plantations at

3000-403: The "buyer of last resort". During the fourth quarter of 2008, these central banks purchased US$ 2.5 (~$ 3.47 trillion in 2023) trillion of government debt and troubled private assets from banks. This was the largest liquidity injection into the credit market, and the largest monetary policy action in world history. Following a model initiated by the 2008 United Kingdom bank rescue package ,

3100-764: The 2008 financial crisis, consumer regulators in America have more closely supervised sellers of credit cards and home mortgages in order to deter anticompetitive practices that led to the crisis. At least two major reports on the causes of the crisis were produced by the U.S. Congress: the Financial Crisis Inquiry Commission report, released January 2011, and a report by the United States Senate Homeland Security Permanent Subcommittee on Investigations entitled Wall Street and

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3200-529: The CRA. They contend that there were two, connected causes to the crisis: the relaxation of underwriting standards in 1995 and the ultra-low interest rates initiated by the Federal Reserve after the terrorist attack on September 11, 2001. Both causes had to be in place before the crisis could take place. Critics also point out that publicly announced CRA loan commitments were massive, totaling $ 4.5 trillion in

3300-491: The Financial Crisis: Anatomy of a Financial Collapse , released April 2011. In total, 47 bankers served jail time as a result of the crisis, over half of which were from Iceland , where the crisis was the most severe and led to the collapse of all three major Icelandic banks. In April 2012, Geir Haarde of Iceland became the only politician to be convicted as a result of the crisis. Only one banker in

3400-486: The LMI borrowers targeted by the CRA, especially in the years 2005–2006 leading up to the crisis, nor did it find any evidence that lending under the CRA rules increased delinquency rates or that the CRA indirectly influenced independent mortgage lenders to ramp up sub-prime lending. To other analysts the delay between CRA rule changes in 1995 and the explosion of subprime lending is not surprising, and does not exonerate

3500-600: The SEC's December 2011 securities fraud case against six former executives of Fannie and Freddie, Peter Wallison and Edward Pinto estimated that, in 2008, Fannie and Freddie held 13 million substandard loans totaling over $ 2 trillion. In the early and mid-2000s, the Bush administration called numerous times for investigations into the safety and soundness of the GSEs and their swelling portfolio of subprime mortgages. On September 10, 2003,

3600-549: The U.S. to borrow money from abroad, in the process bidding up bond prices and lowering interest rates. Bernanke explained that between 1996 and 2004, the U.S. current account deficit increased by $ 650 billion, from 1.5% to 5.8% of GDP. Financing these deficits required the country to borrow large sums from abroad, much of it from countries running trade surpluses. These were mainly the emerging economies in Asia and oil-exporting nations. The balance of payments identity requires that

3700-409: The United States did not have wealth declines at all during the crisis because they generally did not own financial investments whose value can fluctuate. The Federal Reserve surveyed 4,000 households between 2007 and 2009, and found that the total wealth of 63% of all Americans declined in that period and 77% of the richest families had a decrease in total wealth, while only 50% of those on the bottom of

3800-487: The United States served jail time as a result of the crisis, Kareem Serageldin , a banker at Credit Suisse who was sentenced to 30 months in jail and returned $ 24.6 million in compensation for manipulating bond prices to hide $ 1 billion of losses. No individuals in the United Kingdom were convicted as a result of the crisis. Goldman Sachs paid $ 550 million to settle fraud charges after allegedly anticipating

3900-559: The bailout to Fannie Mae and Freddie Mac exceeds $ 300 billion (c. $ 401 billion in 2023 ) (calculated by adding the fair value deficits of the entities to the direct bailout funds at the time). Economist Paul Krugman argued in January 2010 that the simultaneous growth of the residential and commercial real estate pricing bubbles and the global nature of the crisis undermines the case made by those who argue that Fannie Mae, Freddie Mac, CRA, or predatory lending were primary causes of

4000-535: The bailouts, such as in the case of the AIG bonus payments controversy , leading to the development of a variety of "decision making frameworks", to help balance competing policy interests during times of financial crisis. Alistair Darling , the U.K.'s Chancellor of the Exchequer at the time of the crisis, stated in 2018 that Britain came within hours of "a breakdown of law and order" the day that Royal Bank of Scotland

4100-557: The bankruptcy of New Century Financial . As demand and prices continued to fall, the contagion spread to worldwide credit markets by August, and central banks began injecting liquidity . By July 2008, Fannie Mae and Freddie Mac , companies which together owned or guaranteed half of the U.S. housing market, were on the verge of collapse; the Housing and Economic Recovery Act enabled the government to take over and cover their combined $ 1.6 trillion debt on September 7. In response to

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4200-726: The brink, consumers and businesses would be facing a much harder time getting credit right now even if the financial system were rock solid. The problem with the economy is the loss of close to $ 6 trillion in housing wealth and an even larger amount of stock wealth. ... the pace of economic contraction is slowing. Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales. Although economic activity

4300-696: The bubble burst, Australian economist John Quiggin wrote, "And, unlike the Great Depression, this crisis was entirely the product of financial markets. There was nothing like the postwar turmoil of the 1920s, the struggles over gold convertibility and reparations, or the Smoot-Hawley tariff , all of which have shared the blame for the Great Depression." Instead, Quiggin lays the blame for the 2008 near-meltdown on financial markets, on political decisions to lightly regulate them, and on rating agencies which had self-interested incentives to give good ratings. Lower interest rates encouraged borrowing. From 2000 to 2003,

4400-548: The city had 24,596 people. In 2000, the town's population was 47,148 people. During the 2010 national census and household population survey, the city had 71,700 inhabitants. The table below illustrates the same data in tabular format. While being on the Lusaka–Livingstone Road , Mazabuka is also connected to Lusaka in the north-east and Livingstone in the south-west by the Zambia Railways line. Mazabuka

4500-501: The committee members refused to accept the report and instead rebuked OFHEO for their attempt at regulation. Some, such as Wallison, believe this was an early warning to the systemic risk that the growing market in subprime mortgages posed to the U.S. financial system that went unheeded. A 2000 United States Department of the Treasury study of lending trends for 305 cities from 1993 to 1998 showed that $ 467 billion of mortgage lending

4600-635: The councils with the majority of them being infrastructure management and local administration. Councils are mandated to maintain each of their community centres, zoos, local parks, drainage system, playgrounds, cemeteries, caravan sites, libraries, museums and art galleries. They also work along with specific government departments for helping in agriculture, conservation of natural resources, postal service, establishing and maintaining hospitals, schools and colleges. The councils prepare schemes that encourage community participation. Financial crisis of 2007%E2%80%932008 The 2007–2008 financial crisis , or

4700-539: The country lies in the frontier formed between the continental divide separating the Atlantic Ocean and the Indian Ocean, which traverses from DR Congo to the south of Tanzania . There are three major seasons: a cool dry season from April to August, a hot dry season from August to November and a warm wet season from November to April. The maximum heat is experienced during November, while the maximum rainfall

4800-403: The crisis and selling toxic investments to its clients. With fewer resources to risk in creative destruction, the number of patent applications was flat, compared to exponential increases in patent application in prior years. Typical American families did not fare well, nor did the "wealthy-but-not-wealthiest" families just beneath the pyramid's top. However, half of the poorest families in

4900-446: The crisis in commercial real estate and related lending took place after the crisis in residential real estate. Business journalist Kimberly Amadeo reported: "The first signs of decline in residential real estate occurred in 2006. Three years later, commercial real estate started feeling the effects." Denice A. Gierach, a real estate attorney and CPA, wrote: ... most of the commercial real estate loans were good loans destroyed by

5000-437: The crisis was not only confined to the Federal Reserve 's provision of aid to individual financial institutions. The Federal Reserve has also conducted a number of innovative lending programs with the goal of improving liquidity and strengthening different financial institutions and markets, such as Freddie Mac and Fannie Mae . In this case, the major problem among the market is the lack of free cash reserves and flows to secure

5100-526: The crisis. As part of national fiscal policy response to the Great Recession , governments and central banks, including the Federal Reserve , the European Central Bank and the Bank of England , provided then-unprecedented trillions of dollars in bailouts and stimulus , including expansive fiscal policy and monetary policy to offset the decline in consumption and lending capacity, avoid

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5200-509: The crisis. In other words, bubbles in both markets developed even though only the residential market was affected by these potential causes. Countering Krugman, Wallison wrote: "It is not true that every bubble—even a large bubble—has the potential to cause a financial crisis when it deflates." Wallison notes that other developed countries had "large bubbles during the 1997–2007 period" but "the losses associated with mortgage delinquencies and defaults when these bubbles deflated were far lower than

5300-490: The district headquarters and has provincial local government officers and auditors. Each council is responsible for raising and collecting local taxes and the budgets of the council are audited and submitted every year after the annual budget. The elected members of the council do not draw salaries, but are paid allowances from the council. Southern is a predominantly rural district and hence there are no city or municipal councils. The government stipulates 63 different functions for

5400-419: The district headquarters are the same as the district names. There are fifteen councils in the province, each of which is headed by an elected representative, called councilor. Each councilor holds office for three years. The administrative staff of the council is selected based on Local Government Service Commission from within or outside the district. The office of the provincial government is located in each of

5500-527: The edge of the Kafue Flats , and cattle ranching. Southern Province has the only large source of fossil fuel in Zambia, the Maamba coal mine in the Zambezi valley, served by a branch line of the railway. Southern Province is bordered along Zimbabwe in the south divided by Victoria Falls, Central in the north, Western Province in the west and Lusaka Province in the northeast. The general topography of

5600-414: The end of the first quarter of 2009, resulting in a decline in consumption, then a decline in business investment. In the fourth quarter of 2008, the quarter-over-quarter decline in real GDP in the U.S. was 8.4%. The U.S. unemployment rate peaked at 11.0% in October 2009, the highest rate since 1983 and roughly twice the pre-crisis rate. The average hours per work week declined to 33, the lowest level since

5700-608: The end product." Essentially, investment banks and hedge funds used financial innovation to enable large wagers to be made, far beyond the actual value of the underlying mortgage loans, using derivatives called credit default swaps, collateralized debt obligations and synthetic CDOs . By March 2011, the FDIC had paid out $ 9 billion (c. $ 12 billion in 2023 ) to cover losses on bad loans at 165 failed financial institutions. The Congressional Budget Office estimated, in June 2011, that

5800-517: The export industry is limited due to high transport costs linking processed sugar to export markets. Nationally, the sugar industry in Mazabuka contributes to around 4% of GDP each year. The sugar industry in Mazabuka made international news in 2013 when it was discovered that Zambia Sugar , the biggest sugar company in the country, had paid nothing in corporate taxes to Zambia in the previous 5 years. Southern Province and Eastern Province are

5900-473: The federal funds rate to drop below where it was supposed to be. However, in October 2008, the Federal Reserve was granted the power to provide banks with interest payments on their surplus reserves. This created a motivation for banks to retain their reserves instead of disbursing them, so reducing the need for the Federal Reserve to hedge its increased lending by decreases in alternative assets. Money market funds also went through runs when people lost faith in

6000-426: The financial system and got banks to start lending again, both to each other and to people. Many homeowners who were trying to keep their homes from going into default got housing credits. A package of policies was passed that let borrowers refinance their loans even though the value of their homes was less than what they still owed on their mortgages . While the causes of the bubble and subsequent crash are disputed,

6100-457: The government began collecting the data in 1964. The economic crisis started in the U.S. but spread to the rest of the world. U.S. consumption accounted for more than a third of the growth in global consumption between 2000 and 2007 and the rest of the world depended on the U.S. consumer as a source of demand. Toxic securities were owned by corporate and institutional investors globally. Derivatives such as credit default swaps also increased

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6200-588: The government of Zambia at the time to threaten repossession of the asset. From 2015 the JV has placed in U$ 50 million investment to reboot operations at the Munali Nickel Mine . The Mine recommenced operations in 2019. The mine is managed by an all-Zambian management team and currently has a workforce of 380 people, of which 10% are women. Munali currently exports over 10% high quality Nickel concentrate . The mine

6300-609: The government seized Washington Mutual (the largest savings and loan firm ). On October 3, Congress passed the $ 800 billion Emergency Economic Stabilization Act , which authorized the Treasury Department to purchase troubled assets and bank stocks. The Fed began a program of quantitative easing by buying treasury bonds and other assets, such as MBS, and the February 2009 American Recovery and Reinvestment Act , signed by newly elected President Barack Obama , included

6400-506: The governments of European nations and the United States guaranteed the debt issued by their banks and raised the capital of their national banking systems, ultimately purchasing $ 1.5 trillion newly issued preferred stock in major banks. The Federal Reserve created then-significant amounts of new currency as a method to combat the liquidity trap . Bailouts came in the form of trillions of dollars of loans, asset purchases, guarantees, and direct spending. Significant controversy accompanied

6500-513: The growing crisis, governments around the world deployed massive bail-outs of financial institutions and other monetary and fiscal policies to prevent a collapse of the global financial system . After the bankruptcy of Lehman Brothers , the fourth largest U.S. investment bank, on September 15, the next day the Fed bailed out the American International Group (the largest U.S. insurance company), and on September 25

6600-421: The higher payments associated with rising interest rates and began to default. During 2007, lenders began foreclosure proceedings on nearly 1.3 million properties, a 79% increase over 2006. This increased to 2.3 million in 2008, an 81% increase vs. 2007. By August 2008, approximately 9% of all U.S. mortgages outstanding were either delinquent or in foreclosure. By September 2009, this had risen to 14.4%. After

6700-578: The linkage between large financial institutions. The de-leveraging of financial institutions, as assets were sold to pay back obligations that could not be refinanced in frozen credit markets, further accelerated the solvency crisis and caused a decrease in international trade. Reductions in the growth rates of developing countries were due to falls in trade, commodity prices, investment and remittances sent from migrant workers (example: Armenia ). States with fragile political systems feared that investors from Western states would withdraw their money because of

6800-505: The loans. The Federal Reserve took a number of steps to deal with worries about liquidity in the financial markets. One of these steps was a credit line for major traders, who act as the Fed's partners in open market activities. Also, loan programs were set up to make the money market mutual funds and commercial paper market more flexible. Also, the Term Asset-Backed Securities Loan Facility (TALF)

6900-428: The losses suffered in the United States when the 1997–2007 [bubble] deflated." According to Wallison, the reason the U.S. residential housing bubble (as opposed to other types of bubbles) led to financial crisis was that it was supported by a huge number of substandard loans—generally with low or no downpayments. Krugman's contention (that the growth of a commercial real estate bubble indicates that U.S. housing policy

7000-627: The major festivals celebrated in the Province. Provincial administration is set up purely for administrative purposes. The province is headed by a minister appointed by the President and there are ministries of central government for each province. The administrative head of the province is the Permanent Secretary, appointed by the President. There is a Deputy Permanent Secretary, heads of government departments and civil servants at

7100-650: The majority report of the Financial Crisis Inquiry Commission, conservative American Enterprise Institute fellow Peter J. Wallison stated his belief that the roots of the financial crisis can be traced directly and primarily to affordable housing policies initiated by the United States Department of Housing and Urban Development (HUD) in the 1990s and to massive risky loan purchases by government-sponsored entities Fannie Mae and Freddie Mac. Based upon information in

7200-599: The market. To keep it from getting worse, the Fed said it would give money to mutual fund companies. Also, Department of Treasury said that it would briefly cover the assets of the fund. Both of these things helped get the fund market back to normal, which helped the commercial paper market, which most businesses use to run. The FDIC also did a number of things, like raise the insurance cap from $ 100,000 to $ 250,000, to boost customer trust. They engaged in Quantitative Easing , which added more than $ 4 trillion to

7300-651: The national capital and largest city. The geographical coordinates of Mazabuka are:15°50'48.0"S, 27°44'51.0"E (Latitude:-15.846667; Longitude:27.747500). Mazabuka sits at an average elevation of 1,067 metres (3,501 ft) above mean sea level . The town has grown around sugar cane plantations , and currently it hosts the headquarters of Zambia Sugar , the largest sugar-manufacturing company in Zambia, with annual output in excess of 318,467 tonnes (351,050 tons) of crystalline sugar annually. During World War II , 50 Polish refugees escaping from German- and Soviet-occupied Poland , were admitted in Mazabuka in 1941. In 1990,

7400-651: The peak of the Financial crisis of 2007 - 2008 the Mine would struggle for many years. It was briefly owned and run by JINCHUAN mining group of China from 2010. JINCHUAN would invest U$ 37 million and employ about 350 workers. However, the mine was shut down again in 2011 due to cashflow problems. A joint venture Mabiza Resources between Consolidated Nickel Mines Plc of the United kingdom and CE Mining took ownership in 2014 but delayed capital injection which led

7500-588: The precipitating factor for the Financial Crisis of 2007–2008 was the bursting of the United States housing bubble and the subsequent subprime mortgage crisis , which occurred due to a high default rate and resulting foreclosures of mortgage loans , particularly adjustable-rate mortgages . Some or all of the following factors contributed to the crisis: The relaxing of credit lending standards by investment banks and commercial banks allowed for

7600-501: The price appreciation. In a Peabody Award -winning program, NPR correspondents argued that a "Giant Pool of Money" (represented by $ 70 trillion in worldwide fixed income investments) sought higher yields than those offered by U.S. Treasury bonds early in the decade. This pool of money had roughly doubled in size from 2000 to 2007, yet the supply of relatively safe, income generating investments had not grown as fast. Investment banks on Wall Street answered this demand with products such as

7700-451: The promotion of thousands of small mortgage brokers, and by their close relationship to subprime loan aggregators such as Countrywide . Depending on how "subprime" mortgages are defined, they remained below 10% of all mortgage originations until 2004, when they rose to nearly 20% and remained there through the 2005–2006 peak of the United States housing bubble . The majority report of the Financial Crisis Inquiry Commission , written by

7800-523: The province as of 2005 and there were 12,403 AIDS death as of 2010. The former provincial capital of Southern Province, Livingstone , is Zambia's tourism hub and home to international tourist attraction Mosi-Oa-Tunya (Victoria Falls) . Situated across the Zambezi River from Victoria Falls Town , Zimbabwe , Livingstone competes to be a jumping off point for tourism to the region that includes other attractions such as Lochinvar National Park and

7900-528: The province is characterized by uplifted planation surfaces . The general elevation of the nation as a whole is tended towards West to East from the Kalahari Basin . The level of land falls from the upper Congo towards the Zambezi depression in the South forming a plateau. The province lies in the watershed between DR Congo and Zambezi river systems. The province along with some of the other provinces in

8000-435: The province was 2.80%. The median age in the province at the time of marriage was 20.6. The average household size was 5.4, with the families headed by females being 4.6 and 5.7 for families headed by men. The total eligible voters in the province was 64.10%. The unemployment rate of the province was 12.10%. The total fertility rate was 6.1, complete birth rate was 6.2, crude birth rate was 37.0, child women population at birth

8100-453: The province with the condition stood at 3,068. The life expectancy at birth stood at 56 compared to the national average of 51. Agriculture is the primary economic activity in Southern Province with a mix of small holder and commercial maize farms across the province. Compared to other major agricultural regions, such as Eastern Province, Southern Province has more abundant land and access to water, but receives less rainfall. Southern Province

8200-540: The province's south-eastern edge. The eastern border is the Kariba Gorge and Zambezi, and the north-east border is the Kafue River , forming its border with Lusaka Province . The Kafue Flats lie mostly within the province's northern border with Central Province . In the north-west lies part of the famous Kafue National Park , the largest in Zambia. The south-western border with Western Province runs through

8300-401: The provincial level. Southern Province is divided into fifteen districts , namely, Chikankata District , Chirundu District , Choma District , Gwembe District , Itezhi-Tezhi District , Kalomo District , Kazungula District , Livingstone District , Mazabuka District , Monze District , Namwala District , Pemba District , Siavonga District , Sinazongwe District and Zimba District . All

8400-400: The pyramid suffered a decrease. The following is a timeline of the major events of the financial crisis, including government responses, and the subsequent economic recovery. There is a really good reason for tighter credit. Tens of millions of homeowners who had substantial equity in their homes two years ago have little or nothing today. Businesses are facing the worst downturn since

8500-416: The relatively conservative government-sponsored enterprises (GSEs) policed mortgage originators and maintained relatively high underwriting standards prior to 2003. However, as market power shifted from securitizers to originators, and as intense competition from private securitizers undermined GSE power, mortgage standards declined and risky loans proliferated. The riskiest loans were originated in 2004–2007,

8600-440: The sex ratio to 1,039 for every 1,000 males, compared to the national average of 1,028. The literacy rate stood at 71.20% against a national average of 70.2%. The rural population constituted 75.33%, while the urban population was 24.67%. The total area of the province was 85,283 km and the population density was 18.60 per km . The population density during 2000 Zambian census stood at 18.60. The decadal population growth of

8700-610: The six Democratic appointees, the minority report, written by three of the four Republican appointees, studies by Federal Reserve economists, and the work of several independent scholars generally contend that government affordable housing policy was not the primary cause of the financial crisis. Although they concede that governmental policies had some role in causing the crisis, they contend that GSE loans performed better than loans securitized by private investment banks, and performed better than some loans originated by institutions that held loans in their own portfolios. In his dissent to

8800-464: The supply of mortgages originated at traditional lending standards had been exhausted, and continued strong demand began to drive down lending standards. The collateralized debt obligation in particular enabled financial institutions to obtain investor funds to finance subprime and other lending, extending or increasing the housing bubble and generating large fees. This essentially places cash payments from multiple mortgages or other debt obligations into

8900-437: The two primary breadbaskets of Zambia. Southern Province produces more than 600,000 metric tons of maize each year from a combination of commercial, which are unique to Southern Province, and smallholder farms. Despite poor rains in recent years and a strong El Nino weather cycle in 2016, Zambian maize output has been predicted to continue to grow. Growth in Southern Province and across the country has allowed Zambia to remain

9000-622: The years between 1994 and 2007. They also argue that the Federal Reserve's classification of CRA loans as "prime" is based on the faulty and self-serving assumption that high-interest-rate loans (3 percentage points over average) equal "subprime" loans. Others have pointed out that there were not enough of these loans made to cause a crisis of this magnitude. In an article in Portfolio magazine, Michael Lewis spoke with one trader who noted that "There weren't enough Americans with [bad] credit taking out [bad loans] to satisfy investors' appetite for

9100-464: The years of the most intense competition between securitizers and the lowest market share for the GSEs. The GSEs eventually relaxed their standards to try to catch up with the private banks. A contrarian view is that Fannie Mae and Freddie Mac led the way to relaxed underwriting standards, starting in 1995, by advocating the use of easy-to-qualify automated underwriting and appraisal systems, by designing no-down-payment products issued by lenders, by

9200-466: Was 807, general fertility rate was 160, gross reproduction rate was 2.5 and net reproduction rate was 1.8. The total labour force constituted 55.00% of the total population. Out of the labour force, 64.1% were men and 46.7% women. The annual growth rate of labour force was 4.4%. Tonga was the most spoken language with 74.70% speaking it. Albinism is a condition where the victims do not have any pigment in their skin, hair or eyes. The total population in

9300-524: Was among the five worst financial crises the world had experienced and led to a loss of more than $ 2 trillion from the global economy. U.S. home mortgage debt relative to GDP increased from an average of 46% during the 1990s to 73% during 2008, reaching $ 10.5 (~$ 14.6 trillion in 2023) trillion. The increase in cash out refinancings , as home values rose, fueled an increase in consumption that could no longer be sustained when home prices declined. Many financial institutions owned investments whose value

9400-450: Was bailed-out. Instead of financing more domestic loans, some banks instead spent some of the stimulus money in more profitable areas such as investing in emerging markets and foreign currencies. In July 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act was enacted in the United States to "promote the financial stability of the United States". The Basel III capital and liquidity standards were adopted worldwide. Since

9500-542: Was based on home mortgages such as mortgage-backed securities , or credit derivatives used to insure them against failure, which declined in value significantly. The International Monetary Fund estimated that large U.S. and European banks lost more than $ 1 trillion on toxic assets and from bad loans from January 2007 to September 2009. Lack of investor confidence in bank solvency and declines in credit availability led to plummeting stock and commodity prices in late 2008 and early 2009. The crisis rapidly spread into

9600-733: Was funded by debt financing from Barclays Capital and the European Investment Bank and equity from Albidon Limited, JINCHUAN mining group of China and ZCCM Investment Holdings . In April 2007, then Zambian President, Levy Mwanawasa launched the Munali Nickel Project at a ground breaking ceremony. The mine would be built and operated under the venture's special purpose vehicle Albidon Zambia Limited (AZL). AZL commenced mining and production of nickel concentrates in April 2008. Operations were suspended in 2009 because of poor market conditions. From

9700-550: Was made by Community Reinvestment Act (CRA)-covered lenders into low and mid-level income (LMI) borrowers and neighborhoods, representing 10% of all U.S. mortgage lending during the period. The majority of these were prime loans. Sub-prime loans made by CRA-covered institutions constituted a 3% market share of LMI loans in 1998, but in the run-up to the crisis, fully 25% of all subprime lending occurred at CRA-covered institutions and another 25% of subprime loans had some connection with CRA. However, most sub-prime loans were not made to

9800-517: Was not the cause of the crisis) is challenged by additional analysis. After researching the default of commercial loans during the financial crisis, Xudong An and Anthony B. Sanders reported (in December 2010): "We find limited evidence that substantial deterioration in CMBS [commercial mortgage-backed securities] loan underwriting occurred prior to the crisis." Other analysts support the contention that

9900-522: Was put in place thanks to a joint effort with the US Department of the Treasury. This plan was meant to make it easier for consumers and businesses to get credit by giving Americans who owned high-quality asset-backed securities more credit. Before the crisis, the Federal Reserve's stocks of Treasury securities were sold to pay for the increase in credit. This method was meant to keep banks from trying to give out their extra savings, which could cause

10000-489: Was the major crop in the province with 4,695 metric tonnes, constituting 40.62% of the national output. Mazabuka grows 90% of sugar grown in Zambia with an estimated 430 tons produced annually. Sugarcane fields in Mazabuka are among the most productive in the world by hectare and low production costs allow production to compete on international markets. Around 60% of sugar is exported to Europe and other markets. However,

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