Question

According to the Fed, what were the major problems during the financial crisis of 2008? Check all that apply.

Answer 1

The financial crisis of 2007–2008, also known as the global financial crisis and the2008 financial crisis, is considered by many economists to have been the worstfinancial crisis since the Great Depression of the 1930s. ... The crisis was nonetheless followed by a global economic downturn

Answer 2

The collapse of the investment bank Lehman Brothers impacted the financial world globally, which meant that they needed a massive bailout, especially when their debt was 60 to 1, when it should be 10 to one.
Because of this crisis in the US (which was solved rather quickly), the EU market also fail, and they needed a bail out too. The problem escalated from a US problem to a world wide problem in a couple of days, causing a great recession.

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