Financial Crisis Research Paper

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The 2007 Financial Crisis is a result of two decades worth of failed economic responsibility that ranged from the housing market to business fronts. The housing market in the 1980’s- 1990’s was the start of the modern economic recession and financial crisis creating what is now know as the Housing Bubble. Economic Recession is when there is a significant decline in the economy lasting longer than a few months; while a financial crisis is defined as, when the value of multiple financial institutions and other valuable assets for said institutions decrease at a surprising rate. The prospective cause of the 2008 Financial Crisis is the dramatic drop in the housing marker and the great risk of economic failure of major financial institutions around the world. The downturn of events began when governmental funds had to be used to bail out large investment bank Bears Stearns in March of 2008, followed by the complete failure of Lehman Brothers in September later that same year. Scores of establishments working with the economy both in Europe and the United States began to see quite a sig...

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