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In 2008 the world economy faced its most dangerous crisis since the Great Depression of the 1930s. The contagion, which began in 2007 when sky-high home prices in the United States.. The article states that not only was the housing market significantly impacted, leading up to the crisis, but the American Auto industry also took a big hit before and after. "How did a crisis in the American housing market threaten to drag down the entire global economy? It began with mortgage dealers who issued mortgages with terms unfavourable to borrowers, who were often families that did not qualify for ordinary home loans".
A common theme in these articles is that there were many smaller events that led to the financial crisis, and not just problems in the housing market. This Forbes outlines smaller events starting in 1998 with the dotcom bust and then leading into the fact that soon after, lower interest rates fuelled a brief apparent boom. Finally, private lenders were a large problem that led to the financial crisis and in fact many people consciously knew that they were abusing things like the housing markets with mortgages.
"The financial crisis of 2007/2008 was the largest and most severe financial event since the Great Depression and reshaped the world of finance and investment banking". What led to the financial crisis were a series of initially small financial events starting at the end of World War 2. A major cause for conflict was the fact that in the late 90s and early 2000s, bonds were being sold for asests based upon debt. The fact that these bonds, which are typically a secure investment, were based on debt money was a major cause of the financial crisis of 2008.
The effects of the financial crisis are still being felt today. "The collapse of Lehman Brothers, a sprawling global bank, in September 2008 almost brought down the world’s financial system". The article summarizes how we are still feeling the effects of the financial crisis today and the world, as a whole, hasn't significantly bounced back to the GDP, or way it was before.
The 2008 financial crisis is the worst economic disaster since the Great Depression. The financial crisis also led to the Great Recession. This article points out that the first big sign pointing to a crash was in 2006, when housing prices started to fall. This was because there were too many home owners with questionable credit. Another problem in this area was that there was a subprime mortgage crisis because people were selling mortgage-backed securities needed mortgages as collateral. This resulted in many abandoned homes as lawyers took away home owner's money and these home owners could't afford their homes.