The Global Financial Crisis consists of a lot of money being spent all around the world and most of the time causing problems in the economy. The cause of the global financial crisis is human beings because they love money and every human being wants to have a lot of money. Most of the time, people do not have the money to be spending but they spend money either way and that causes them to be in debt. This debt can cause the financial systems to have some problems, therefore, making it easier for the financial system to collapse. For example, the Asian Financial Crisis that occurred in 1997 was the forerunner of what happened in 2008-2009. It first started in Indonesia and continued to Malaysia, South Korea, and many other parts in Asia, and then soon or later to the rest of the world. It is almost impossible to know what really causes the global financial crisis, but there are some that are almost always being discussed. The six causes include deregulation of financial markets, sophisticated financial innovations linked to rapid changes in computer technologies, excessive executive compensation, low-interest rates, subprime loans on a mortgage, and speculation. The Impact of the Global Financial Crisis affected many areas and those areas are foreclosures, the decline in manufacturing and trade, and global power shift. Therefore, it caused many countries problems and caused many people in those countries to have financial problems.
- elizabethgomez11