After the outbreak of the early subprime housing credit crisis, investors began to lose confidence in the value of mortgage-backed securities, triggering a liquidity crisis.
The 2007-2009 global financial crisis, also known as the world financial crisis, credit crisis, and credit crisis, was also named the financial tsunami and Wall Street tsunami in 2008. It was a crisis that occurred in August 2007. The financial crisis began to emerge on the 9th. After the early subprime housing credit crisis, investors began to lose confidence in the value of mortgage-backed securities, triggering a liquidity crisis.
Even if the central banks of many countries have repeatedly injected huge amounts of funds into the financial market, they cannot prevent the outbreak of this financial crisis. It was not until September 9, 2008, that the financial crisis began to spiral out of control and resulted in the collapse or government takeover of many fairly large financial institutions.
Extended information
Outbreak:
On Sunday, September 14, Lehman Brothers filed for bankruptcy after the U.S. Federal Reserve refused to provide financial support assistance, and On the same day Merrill Lynch announced its acquisition by Bank of America.
These two events marked the beginning of the global stock market crash in September 2008 in the following week. On September 15 (Monday) and September 17 (Wednesday), the market value of global stock markets A plummeting situation.
Baidu Encyclopedia-Global Economic Crisis