What can we learn from the 2008 financial crisis?

What can we learn from the 2008 financial crisis?

The 2008 financial crisis taught us the importance of regulatory oversight, risk management, and the dangers of excessive leverage.

How did the crisis affect the global economy?

The crisis led to a severe recession, massive unemployment, and a loss of consumer confidence, impacting economies worldwide.

What were the main causes of the crisis?

Key causes included subprime mortgage lending, financial derivatives, and a lack of transparency in financial institutions.

What measures have been taken to prevent a similar crisis?

Regulatory reforms like the Dodd-Frank Act were implemented to increase oversight and reduce systemic risks in the financial system.

Can you explain the role of the Federal Reserve during the crisis?

The Federal Reserve played a crucial role by providing liquidity to banks, lowering interest rates, and implementing emergency measures to stabilize the economy.