| Publication |
2009.
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| Summary/Abstract |
The world financial crisis, which began with the collapse of the U.S. credit pyramid, is known to be the biggest crisis since the Great Depression.
The first signs of the crisis appeared in the U.S. mortgage market in 2006 (housing loans were not being repaid), and shortly afterwards this market collapsed, triggering a global liquidity crisis. Housing prices in the U.S. plummeted, investments in housing construction fell, and the liquidity of the mortgage derivatives market began to decline. All of this took place against the background of a jump in credit spreads in money markets; the stocks of international companies plunged, and stock indexes fell significantly due to the bankruptcy of major financial institutions, primarily investment banks.
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