This “Giant Pool of Money” increased as savings from high-growth developing nations entered global capital markets. The temptation offered by such readily available savings overwhelmed the policy and regulatory control mechanisms in country after country, as lenders and borrowers put these trade forex like a pro pdf editor to use, generating bubble after bubble across the globe. 2007 and 2008 caused the equivalent of a bank run on the U.
This system had grown to rival the depository system in scale yet was not subject to the same regulatory safeguards. Financial Crisis Inquiry Commission reported its findings in January 2011. The immediate or proximate cause of the crisis in 2008 was the failure or risk of failure at major financial institutions globally, starting with the rescue of investment bank Bear Stearns in March 2008 and the failure of Lehman Brothers in September 2008. Many of these institutions had invested in risky securities that lost much or all of their value when U.