Global financial crisis, 2008

The global financial crisis of September–October 2008 is a major ongoing financial crisis, the worst of its kind since the Great Depression. It became prominantly visible in mid-September, 2008 with the failure, merger or conservatorship of several large United States-based financial firms. The underlying causes leading to the crisis had been reported in business journals for many months before September, with commentary about the financial stability of leading U.S. investment banks, insurance firms and mortgage banks.

Beginning with failures of large financial institutions in the United States, it rapidly evolved into a global crisis resulting in a number of European bank failures and reductions in stock indexes, and value of equities (stock) and commodities worldwide. The crisis has lead to a liquidity problem and the de-leveraging of financial institutions especially in the United States and Europe, which further accelerated the liqudity crisis. World political leaders and national ministers of finance and central bank directors have coordinated their efforts to reduce fears but the crisis is ongoing and continues to change. The crisis has roots in the subprime mortgage crisis and is an acute phase of the financial crisis of 2007–2008.

Links

• "How This Bear Market Compares" Multimedia The New York Times
• RGE Monitor
• Commercial Paper Rates and Outstanding (Federal Reserve Bank)

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Video: Global Financial Rescue (European leaders are banking on a plan to give a boost to struggling financial institutions on a global scale.)