What are the causes of the global financial crisis in 2009?

factors that led to the 2009 global financial crisis.



thanks!!What are the causes of the global financial crisis in 2009?
The list of causes of the crisis is fairly long because there were systemic failures and contributing factors but the main causes could be summarized with:



*A housing bubble - that eventually burst

*Poor underwriting/sub-prime lending at financial institutions

*Securitization of mortgages/creation of atypical investment vehicles

*Aggressive risk management

*Poor contingency planning



I think what made the crisis shift from the US to the rest of the world is that fact that we live in a highly connected, global economy. So, a crisis that originates in one nation has the potential to debilitate another - creating a ripple effect.

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