“Global Financial Crisis" Blog Post

Global financial crises have been an issue all throughout history. From Asia to America, a country's financial downfall has the potential to disrupt the world. One example of an influential financial crisis that altered an entire continent was the IMF crisis of South Korea. Financial crises occur due to many outlying factors. A couple of examples include low-income rates, sudden disruptions in national security (like the events of 9/11), executive compensation, and more. Another important financial crisis event is the global financial crisis that dated from 2007-to 2008. During this time, families, students, and individuals were stripped from normal life. People from all around the globe were either in or in danger of extreme poverty. This crisis came to be due to multiple factors but the biggest hit that affected America was the fall of the housing market. To put it in an easy way, banks were participating in easy credit. This meant that there were little to no regulations necessary for individuals to buy houses. Due to this mishap, mortgages were not being paid, and the housing market faced extreme backlash. Although the world did endure such financial crises, new innovative solutions such as TARP was conducted to somehow turn this crisis around.