what contributed to the financial crisis?

Expert Solution

If we turn our history then some of the economic disasters totally shook the world

One of them was 2008 financial crisis

It is still said to be one of the worst economic disaster that world has faced till now after the great depression of 1929

This crisis lead to great recession

Housing prices dropped more than during the depression

The official data also shows that this crisis causes of Unemployment to reach above 9%

Some other reasons that causes the 2008 financial crisis are-

The first sign of crisis begin in the year 2006 when the housing prices get low because of not planned

Lendingby the bankers and lending institutions

Even the data is also shows that the banks that allow people to take out money given more than their 100%

What boosted this was when banks realise that they have lended so much amount of money and stops lending to each other

This is also called London interbank offered rate(LIBOR) rise

The federal reserve which is the central bank of US even began pumping liquidity but does not work

Rahul Sunny answered 2 years ago

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