A brief diagram explains what happened to Financial Crisis and what was the cause.
Financial Crisis was caused by the bankruptcy of a large U.S. bank.
Financial Crisis began in 2008 when Lehman Brothers, an American investment bank, went bankrupt with debts of about 64 trillion yen.The bankruptcy of Lehman Brothers, the fourth largest investment bank in the United States, is said to be the largest corporate bankruptcy in American history. At the time, losses were not limited to Lehman Brothers, so financial institutions as a whole lost, which was a major blow to the economy of the United States and the world as a whole.
The cause is the subprime loan problem
A loan for a poor person is a subprime loan. Originally, poor people are less guaranteed to return the money they lent them (low trust), so it’s hard to borrow money. However, in the United States at the time, there was an idea that “the price of housing will continue to rise”, so it was thought that it was possible to compensate for the house itself by recovering the house itself instead even if the repayment was delayed, and subprime loans were oversupplied. And when the housing bubble burst, many unrepaid loans arose.