The Financial Crisis of 2007–08: Causes, Consequences, and Implications
DOI:
https://doi.org/10.54691/bcpbm.v45i.4931Keywords:
Subprime mortgage; credit default swap; the Dodd-Frank Act; Basel III.Abstract
This research topic is mainly about the financial crisis. The author first proposed the reasons for the financial crisis. Due to the negligence of bank management policies, it will be easier for people to get loans. The real estate industry is a good example of what is brought up. People's financial situation is not strong enough to afford the loan amount. The global financial industry also collapsed as a result. The bankruptcy and debt incident of Lehman Brothers was one of the causes of the financial crisis. The Fed's Monetary Policy is one of the ways to prevent the second occurrence of the financial crisis. There are also many policies and methods in the financial or banking industry to help people avoid the second occurrence of the financial crisis in the future. This paper mentioned some measures and policies that the government has changed after the financial crisis. The reform of the banking system after the financial crisis, COVID-19 has not caused the same damage to the global economy as the 2008 financial crisis.
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