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How To Write An Essay About The 2008 Financial Crisis

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Abstract
A severe catastrophe destroyed the world’s economy and many people’s life because of the Financial Crisis a couple of years ago. Even the managers in Wall Street were scared and nobody predicted it would happen. Faced to the ruins after the crisis, economists and scholars were trying to find out what caused this and how to recover from such kind of impact as soon as possible. Many people lost their savings and living place in the disaster, also, lost their jobs. In case of that, it’s very important to study about the financial crisis and its recovery.

What happened in 2007
In 2007, the world’s economy experienced a catastrophe that began on Wall Street. Most economists regard this disaster (also known as the Global Financial Crisis) to be the worst financial event since the Great Depression. It caused many large financial institutions to go bankrupt such as Lehman Brothers Holdings, it was a top financial institution in the United States which was controlled about one billions of dollars money. The Lehman Brothers Holdings was also a prime signal of the collapse of Wall Street. At the same time, other areas which were related to the …show more content…

The value of the MBS and CDO was from mortgage payments and housing prices (Simkovic, 2013). Due to MBS and CDO, people and financial institutions had passion to invest in real estate market. However, banks who borrowed lots of money to investors, also financial institutions invested in house market lost heavily while the price of house declined. The house was less worth that it before and the mortgage loan because of the falling of house prices. The effect also influenced many other economic fields like stocks market and GDP growth.Experts estimated that trillions of dollars were lost over the world (“IMF Loss Estimates”,

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