What is The Global Financial Crisis? - Economist

The "Global Financial Crisis" can be defined as a global economic recession due to the collapse of the financial bubble due to the mortgage crisis in the United States of America in 2007-2008.

This crisis led to the collapse of the wealth of significant investors in record numbers and the bankruptcy of many banks inside and outside America because most banks and financial institutions in the United States and Europe owned bonds backed by mortgage loans that collapsed.

The crisis spread very quickly due to the expansion of banks giving middle-income individuals loans to obtain residential real estate without strong guarantees, which led to the inability of individuals to repay those loans.

This led to a problem with the liquidity of most banks, and the intervention of the US Federal Reserve "Central Bank" to solve this problem, and the expansion of banks that suffered from cash liquidity, it led to the bankruptcy of most banks and the collapse of many industrial and commercial institutions and the occurrence of a global recession at that time.