Global Financial Crisis 2008 Summary

The financial crisis of 2007 2008 also known as the global financial crisis gfc was a severe worldwide financial crisis excessive risk taking by banks combined with the bursting of the united states housing bubble caused the values of securities tied to u s.

Global financial crisis 2008 summary. Below is a brief summary of the causes and events that redefined the industry and the world in 2007 and 2008. Real estate to plummet damaging financial institutions globally culminating with the bankruptcy of lehman brothers on september. In 2008 the united states experienced a major financial crisis which led to the most serious recession since the second world war. Both involved reckless speculation loose credit and too much debt in asset markets namely the housing market in 2008 and the stock market in 1929.

Some of the world s best known financial institutions collapsed or were nation alized while many others survived only with massive state support. By the winter of 2008 the u s. The global financial crisis gfc or global economic crisis is commonly believed to have begun sometime in early to mid 2007 with a credit crunch when a loss of confidence by us investors in the value of sub prime mortgages caused a liquidity crisis. More than any other financial meltdown in the postwar period the.

The 2008 financial crisis has similarities to the 1929 stock market crash. The global financial crisis of 2008 2009 is widely referred to as the great recession it began with the housing market bubble created by an overwhelming load of mortgage backed securities that bundled high risk loans. The global financial crisis may have been the big news but it was not the only news in 2008. The 2008 financial crisis was the largest and most severe financial event since the great depression and reshaped the world of finance and investment banking.

Both the financial crisis and the downturn in the u s. The crisis led to the great recession where housing prices dropped more than the price plunge during the great depression. Economy was in a full blown recession and as financial institutions liquidity struggles continued global stock markets. It occurred despite the efforts of the federal reserve and the u s.

Economy spread to many foreign nations resulting in a global economic crisis. The 2008 financial crisis was the worst economic disaster since the great depression of 1929. Department of the treasury. At the start of the year singapore announced a major increase in spending on the rail network with a s 20 million commitment and plans for two additional lines.