Question

Explain what the reasons of financial crisis are and take the example of 2008-2009 crises and explain all the stages of the financial crisis in that crisis​

Answer 1

Answer:

The financial crisis was primarily caused by deregulation in the financial industry. That permitted banks to engage in hedge fund trading with derivatives. Banks then demanded more mortgages to support the profitable sale of these derivatives.That created the financial crisis that led to the Great Recession.