Economic Crisis
The economic crisis started in 2007 in the U.S. with the default of Lehman Brothers. It is difficult to indicate a unique cause that brought the entire globe to one of the deepest recession of the last century, but one of the main causes is the credit crunch that followed the explosion of the so called “subprime bubble”.
In particular, several banks faced major drops due to the several subprime products present in their assets. Because those contracts could not be paid anymore by the debtors, several banks had to declare bankruptcy. The bankruptcy of Lehman Brothers was the most ...