Scrutiny of the 2008 Global Financial Crisis: Causes, Features, Consequences and Remedy Tools

Financial crises have been more extensive and pervasive in the last decades than in any previous period as an outcome of financial globalization. The global financial crisis of 2008 has been heralded as the worst financial crisis since the one related to the 1929 Great Depression. It became prominently visible in September 2008, with the failure of several large United States based financial firms. The main causes leading to the crisis were commentary about the financial stability of leading U.S. and European investment banks, insurance firms and mortgage banks consequent to the sub-prime mortgage crisis. The study seeks the analysis of the core causes, features, consequences and remedy tools of the 2008 global financial crisis. The study presents a review and scrutiny of the 2008 financial crisis. It presents a discussion for the reasons of the crisis in terms of sub-prime crisis, lending practices, excess liquidity, predatory lending, incorrect pricing of risk, securitization practices, financial innovations and complexity, speculations and financial deregulations. Furthermore, it represents a descriptive analysis for the features and consequences of the current crisis on the financial sector and real economy. It investigates some remedy tools and bailouts of the crisis.