2008 Financial Crisis Research Paper

Words: 493
Pages: 2

September 15, 2008 was not just the beginning of the financial crisis, which may very well have been the greatest financial crisis ever. For the first time ever, the short-term and overnight credit markets in the United States and around the world shut down. Not only did prices collapse, but the markets ceased to function. Money market mutual funds, within hours of the default, failed or began to fail. Trade credit virtually disappeared, which essentially prevented global trade. It has been said “within days, ships were backing up out of Singapore because buyers could not make their payments.” First and foremost, in order to prevent an economic crisis in the future, we must identify what triggered the previous crisis. In 2008, the US went