Financial Crisis

Great liquidity incentives

Facing a calm decade economically and low growth rates in the richest countries, the main central banks of the world started to decrease interest rates. That created a monetary expansion in the following years. Then credit and other financial activities could find a solid environment to succeed.

High trust in credit markets

After almost a decade without any relevant economical problems in the world, and the increasing of the liquidity in financial markets, people became trusty about the economy and about the financial markets. On the other hand, banks also had not been facing problems to provide credit for anyone before the mortgage crisis has come.

It was too easy to get a loan without warranties, to increase financial investments in stock markets, and to be confident in there were not relevant risks to keep doing the same thing unlimitedly. Of course, the bigger the confidence in those financial practices, the bigger are......

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Title: Financial Crisis
Approximate Word Count: 713
Approximate Pages: 3 (250 words per double-spaced page)

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