Question

What were the major factors that led to the financial crisis that began in 2008? How did we get here? You may find it useful to break this down into primary and secondary causes.

Answer 1

The financial crisis of 2008 started from the policies of the bank before this period. The banks gave more interest on savings of the people. There were many factors that led to financial crisis. It created a great depression in the economy. The economy was globally affected because these were huge crisis happened after 1929. But countries like China and India have grown during this period only

Primary Factors responsible for financial crisis

● Financial deregulation

● High value of fixed assets

● Bank policies

● Greed

● Polotics

● Ignorance of history

● Deregulation of monetary system

Secondary causes of financial crisis

● Poverty

● Unemployment

● Unstability in financial market

● Poor investments

● Political stability

● Real income