Discussing the impact of bursting of the financial bubble in 2008
Financial Crisis of 2008 didn’t just shake the Wall Street but the whole of the financial world. Began in 2007 with a crisis in the subprime mortgage market in the United States and developed into a full-blown international banking crisis with the collapse of the investment giant Lehman Brothers on September 15, 2008. Excessive risk-taking by banks such as Lehman Brothers helped to magnify the financial impact globally. Massive bail-outs of financial institutions and other palliatives monetary and fiscal policies were employed to prevent a collapse of the world financial system. The crisis was nonetheless followed by global economic downturn,the Great Recession.