Running head: RISK MANAGEMENT
2007-2008 FINANCIAL CRISIS
The world financial dilemma of 2007-2008 leads to an economic depression of many
nations across the globe resulting in what is termed as the great recession. An event that started
as instability in the sub-prime division of the United States housing sector modified into a
complete slowdown by the end of 2007 (Bartmann, 2017). The crises started previous years with
increasing home values and low mortgage, thus houses making houses a significant investment
rather than a place to offer shelter. The experience reinforced the old saying that states whole
world sneezes when the U.S catches a cold since stable economics such as those of Japan and
Europe went into recession by mid-2008. Since World War II, this was the first time the globe
experienced a recession. The crisis came as a surprise to many countries, academics, and
policymakers. Due to the global financial crisis, stock markets fell and established companies
collapsed (Garcia-Appendini & Montoriol-Garriga, 2013). Additionally, governments of the
wealthiest nations did not hav...
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