Global financial crisis foreseen due to risky mortgage investments.
The subprime crisis that started in the US in 2007 had a big impact globally. Many countries were affected because they bought securities tied to US mortgages. This crisis led to international discussions on how to prevent similar problems in the future. Banks around the world bought these risky securities for higher profits without doing enough research. The crisis was caused by low interest rates, stable inflation, and quick actions by the Federal Reserve to help the financial markets. The study shows that looking at the crisis from an international perspective is important for understanding and solving it.