The 2008 Financial Crisis

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Introduction
In this study, the causes, spillover process and the effects of the 2008 financial crisis have been analyzed.
The 2008 financial crisis was a securitization crisis contrary to what was believed, not a liquidity crisis, the most common error is defining the years 2007-2009 as the term where there was a lack of liquidity (Piketty, 2014). Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. Briefly, liquidities are the frequency of cash flows in the financial market. Between the years of 2000 and 2008, especially 2002 to 2006, the government policy was to encourage the banks, especially the investment banks, to give mortgage credits to people

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