The Global Financial Crisis in the USA and The Failure of Central Banks

2016 dissertation for MSc. Finance and Risk Management. Selected by academic staff as a good example of a masters level dissertation.The mortgages crisis was one of the main causes of the global financial crisis in 2007,\nleading to the globalisation of the crisis, and the collapse of the financial market. In this\ndissertation, our first attempt will first be to review the different economic breakdown that\nhave been affected the financial market due to the different previous financial crisis. The\nresearcher thinks important to examine some of the previous financial crisis in order to\nascertain the differences between those ones, and the last crisis. This paper will also review\nthe different causes and consequences of the global financial crisis of 2007- 2009 (and its\naftermath), focusing on the main causes and negative impact in the financial sector of the\nUnited States. In fact, policy makers have been trying to establish different solutions to the\ndifferent problems that the financial industry and the global industry have been facing over\nthe years. In addition, policy makers need to be aware of the changing dynamic in the\nfinancial industry in order to upgrade policies and find responses to regulations in order to\navoid a future possible occurrence. In order to fully address the issues facing by the banking\nsector and the economy, we have been looking at the different economic factors behind the\nglobal financial crisis through this dissertation. To that end, we assessed and analysed the\nmain reasons that caused the bubble to explode. Then, we will see the impact of the crisis\nespecially in the United States, before concluding with our policy recommendations.