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Global Financial Crisis Crisis in finance that covered the whole word or the Global Financial Crisis, GFC began around the year 2007. The cause of the crisis was believed to be because of the faith that the investors in the value of mortgages and consequence leading to liquidity crisis (Singh, 2016). The effect led to the Federal Bank of US injecting huge sums of capital into the financial markets. By September 2008, the crisis had grown worse all over the world since stock markets crashed and in consequently becoming volatile. The confidence from the consumers also faded away as each and every person had a fear of the unknown. Causes of global financial crisis First, the fall of the Lehman Brothers global bank in the year 2008 almost led to the fall of the financial system of the world. The taxpayers had to go deep down into their pockets in order solve the situation. The financiers such as the Anglo-Saxon who believed who at first had a belief of having the solution in solving the risk, at lost did not succeed (Singh, 2016). On the same note, the central bankers and other financial regulators also had to carry the blames since they tolerated the folly. In Asia also, through its saving philosophy, led to the drop in the global interests (Dermine, 2013). Other findings also reveal that some banks from Europe made a lot of borrowings of the American money before the occurrence of the crisis and decided to utilize the funds in the purchase of dodgy securities. All these factors resulted in what was to be the huge debt in a world that was initially less risky at all. Impacts of GFC on the financial markets and global economies The effects of the GFC impacted heavily on
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