The Global Financial Crisis in the USA and The Failure of Central Banks

2016 dissertation for MSc. Finance and Risk Management. Selected by academic staff as a good example of a masters level dissertation.The mortgages crisis was one of the main causes of the global financial crisis in 2007, leading to the globalisation of the crisis, and the collapse of the financial market. In this dissertation, our first attempt will first be to review the different economic breakdown that have been affected the financial market due to the different previous financial crisis. The researcher thinks important to examine some of the previous financial crisis in order to ascertain the differences between those ones, and the last crisis. This paper will also review the different causes and consequences of the global financial crisis of 2007- 2009 (and its aftermath), focusing on the main causes and negative impact in the financial sector of the United States. In fact, policy makers have been trying to establish different solutions to the different problems that the financial industry and the global industry have been facing over the years. In addition, policy makers need to be aware of the changing dynamic in the financial industry in order to upgrade policies and find responses to regulations in order to avoid a future possible occurrence. In order to fully address the issues facing by the banking sector and the economy, we have been looking at the different economic factors behind the global financial crisis through this dissertation. To that end, we assessed and analysed the main reasons that caused the bubble to explode. Then, we will see the impact of the crisis especially in the United States, before concluding with our policy recommendations