The Financial Crisis of 2007 Research Paper Example | Topics and Well Written Essays - 1750 words - 1

The Financial Crisis of 2007 - Research Paper Example The 2007 financial crisis proved to be the worst financial crisis in the history of finance. Nowadays, economies are not surviving in isolation but, actually, they are interlinked and due to this reason a fluctuation in one economy can have significant impact on other countries’ economies as well. Lately, due to this reason some major bankruptcy issues were faced by countries like Italy, Greece and Egypt. In this regard, it becomes essential to get insights about the major triggers behind financial crisis so as to develop some individual backup plans in order to survive in the times of recessions and financial crisis. For each individual, it is imperative to understand the basic criteria of spending and investment during the times of recession. Subsequent paragraphs expansively provide insights about the major triggers behind global financial crisis and events that led to these crises. Major Triggers Behind Global Financial Crisis 2007 The major reason behind the occurrence of global financial crisis 2007 was the crash of the US housing markets. This situation was mainly caused by the issuance of subprime mortgage and subsequent defaults of the U.S. in the beginning of new millennium, the world’s economy faced serious concerns including terrorists’ attacks of 9/11, collapse of dot com bubble followed by recession 2007.