1 The financial crisis of 2007–2008, also known as the global financial crisis and the 2008 financial crisis, is considered
by many economists to have been the worst financial crisis since the Great Depression of the 1930s
1.1 It began in 2007 with a crisis in the subprime mortgage market in the USA, and developed into a full-blown international
banking crisis in 2008. Massive bail-outs of financial institutions and other palliative monetary and fiscal policies were
employed to prevent a possible collapse of the world's financial system
2 USA Issues in economy affects the rest of the countries
2.1 When America sneezes , the rest of the world catches a cold
2.1.1 Worst financial banking crisis in 2008
3 High mortgage approval rates led to a large pool of homebuyers, which drove up housing prices. This appreciation in value
led large numbers of homeowners (subprime or not) to borrow against their homes as an apparent windfall. This "bubble"
would be burst by a rising Single-Family Residential Mortgages Delinquency Rate (beginning in August, 2006 and peaking in
the first quarter
4 The crisis was nonetheless followed by a global economic downturn, the Great Recession. The Eurozone crisis, a crisis in
the banking system of the European countries using the euro, followed later.