Global Financial Crisis Caused by Systemic Risk in Mortgage Sector
The article explains why the subprime mortgage crisis in the US caused a global financial meltdown. It shows how risky mortgage investments and financial structures led to a chain reaction of failures in the financial system. The researchers found that the crisis was not just due to bad decisions, but also flaws in how the financial system is set up. They suggest that fixing these systemic issues is crucial for preventing future crises.