Introduction

Every day we watch TV, and we usually get through photos and videos of sad people with depressed faces. In many countries, the stock market is air conditioned and we see people sweating in a cool atmosphere…..we know this is really ironic. How can one feel hot while sitting in a fully air conditioned room? Now, we are going to tell you why all of this is happening. This is happening because nowadays, we are facing a global economical crisis, known as the Global Financial Crisis. This crisis is also called the Crisis of Credit because of the fact that it related to “Credits”. This all started come time ago in the early 21st century when people thought that there was no chance of a crisis striking the world, as it was prospering and its economy was flourishing with a constant increase in the stock market rates. Contradicting the people’s thoughts, the Stock Markets did crash! This was the only major crisis faced by the world after the Great Depression. A major factor was the Sub Prime Mortgage system. In this branch, people of lower classes who do not have a decent loan payment history are given loans by the greedy lenders who charge high interests. People bought luxury apartments and bought them in high quantities like 20 – 30 using these Sub-Prime Mortgages. And now comes the bad, bitter truth……Hey!!!! We are not supposed to tell the whole story here. Surf through the site and get to know all about the Global Financial Crisis.