What caused the Great Financial Crisis?

The Great Financial Crisis, also known as the 2008 financial crisis, was caused by a combination of factors. One of the main causes was the housing market bubble, which was fueled by low interest rates and a relaxation of lending standards. This led to a surge in subprime mortgages, which were then packaged into complex financial instruments and sold around the world. When housing prices started to decline, many homeowners defaulted on their mortgages, causing a ripple effect throughout the financial system. Other contributing factors included the excessive risk-taking by banks and financial institutions, inadequate regulation, and a lack of transparency in the financial markets. The crisis revealed the interconnectedness of the global financial system and the need for better safeguards to prevent such a catastrophic event from happening again.

This mind map was published on 23 May 2023 and has been viewed 65 times.