Capital in the 21st Century
Significance of 2008 Financial Crisis
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The Financial Crisis of 2008 was a situation in which mass defaults occurred on loans made to the middle and lower classes in the U.S. This created a liquidity crisis that threatened to bankrupt big banks. Nobody wanted to lend money to banks with bad credit. Without these loans they could no longer function. This set off a chain of crises throughout financial institutions around the world.