ABOUT THE GREAT RECESSION

It has happened in the year 2008. It all started with the funding of Russian and other Asian countries in American countries. With the funding American banks had started to provide loans to the people with no credit score. Credit score is nothing but score given to a citizen based on the transactions made by him. In India basically we get to know the score of a individual citizen by checking his bank details with RBI. This is done through AADHAR. In this way credit score is givem by the bank based on their account transcations. I fthe credit score is above certain number then they are provided loan or EMI for a product. Since the funding was in huge amounts they started providing these loans to the people with low credit scores also. Since it is every american dream to have a own house everybody used this oppurtunity to construct thier own houses. This is called as SUBPRIME MORTGAGE. This has started increasing in Housing prices. Every loan given to the people is made into a bond. SInce every bank has make some over these bonds they sold these bonds to other companies. They collected a group of bonds and made them as a COLLATERISED DEBT OBLIGATION bond(CDO bond). But every bond has some risk factors since people doesn't buy these bonds with risk factors they wanted a insurance company to involve so that they can insure instead everything goes wrong. Here comes AIG this is the insurance company which provided insurance to others who are buying these bonds from banks. Every bank fears of the credit score, so AIG tricked by using its own ranking method. So people can know the scores but not about it. So banks started buying these bonds based on AIG ranking. This is called CREDIT DEFAULT SWAP. Peopl started to buy in heavy amounts on par with the situation AIG selling that many bonds without thinking if something goes worng they can pay or not. Since after people get to know that the housing rates are high above they stopped buying and getting loans. This started the recession. This had made the banks to sell those bonds. At some time housing market fell beyond expectations. Since AIG has to take responsibility and pay these banks it has left with no money. This is the Great recession in history. Since AIG has many connections with other countries American government has taken responsibility and they used the federal reserve to pay the debts. It amounts of $182 million dollars. This is most of the money paid by the bank in hostory of america. In this way America protected itself and world from the Great Recession.  

CAMBRIDGE ANALYTICA SCAM OVER FACEBOOK'S DATA

This story started with a student named Nigel Oakes. He graduated from a university at Eton. He started investment business later some years he started getting to know about the psychology of people about things. He got interested in knowing these things he came to know that one can change the ideology of people about things. Later he started investing and developed Strategic Communications Laboratories the parent company of Cambridge Analytica. He developed the company and established many of its branches throughout the world. At first, the company used to help the commercial companies to know how to get people to buy their product. He used these techniques for the first time in a political campaign. It didn't get any result. As a result, he had to flee to Singapore. Later after so many days, he appointed Nix as the company CEO. Nix had brought many changes to the company. He brought in many data analysts and software developers. They made an algorithm called as Ripon. They started with this algorithm as a new company AggregateIQ. Nix was approached by a TV company owner Bannon. Bannon knows a hedge fund billionaire Mercer. Mercer agreed to invest in Ripon with $5million. Then these people started using this for political campaigning purposes. The first politician approached them is Ted Cruz. He gets to know about the algorithm and he doesn't believe in that algorithm so he never uses it. Later when Trump started his campaign he approached these people for the algorithm. Trump used them for the campaign by investing $15million in it.
The question raises where these people got the data about the details of the people. Here comes the Cambridge Data professor Aleksandr Kogan approached the Cambridge Analytica. He made an application which runs on the Facebook API. It is nothing but the apps that are present on Facebook. People don't know that by giving access to the mobile through the permissions anyone can access the data about these people. This was observed by Kogan and he used this as a gateway to access the people data through the Facebook pages and their Datacenters. In this way, he acquired 87 million user data. For this Cambridge Analytica has mentioned that they are taking the data for Academic purposes. For that, they have paid $1.4 million. This news came to light after 2 years. All these 2 years Facebook know about the scandal and they have warned Cambridge Analytica to delete the data. They didn't check whether they deleted the data or not. Some days before it Nix was prosecuted by the parliament members about the fake news they spread on social media platforms. There are many other platforms like Cambridge Analytica who are using the people data for their use. SO BE  CAREFUL WHILE GIVING PERMISSIONS TO THE APPS IN YOUR MOBILE OR WHILE USING THE BROWSER ALSO.

TULIP MANIA

A long time ago in France and most of the European countries, tulips are the most famous flowers. They were bought for every occasion in the family and every celebration in the cities. This has encouraged many of the small businesses to get more of these flowers to grow so that they could make some money. After some days the major part of the people gets acquainted with this business and many investors encouraged by investing in these businesses most of the money. It continued for most days. As we know when demand increases, as a result, the price also increases to profit these investors and business persons. the demand is increasing day to day and price as the same. After so many days the demand has increased more than that of the production of these flowers. Tulips are majorly grown with the typical environment. As demand increased day to day people growing these flowers also increased. Even though production has increased demand didn't decrease, as a result, major investors frightened with the idea of getting a loss in this business. They started pulling the money from the business. After this, so many investors started the same thing as a result most the businessman who is selling tulips started decreasing the price. This has resulted in a catastrophe. At some point in time, the price of tulips was greater than it has to be so people stopped buying them, as a result, there is an economic crisis in the tulip industry. The people who are investing in the business who are doing it and to all who are linked to it. This is the first economic crisis that has happened in history and every investor in the world knows it. This is also called as an Economic bubble. After this, another economic crisis has happened known as the .com bubble.