Further Analysis in Global Financial Crisis: The Panic of 1907 and 2008 Subprime Mortgage Crisis

Abstract

Learning about the financial crisis and understanding its origin and internal causes could be helpful in better preparing and responding to the global financial crisis in the future. This paper briefly introduces the background of the Panic of 1907 and the 2008 financial crisis. The relationship between the crisis in 1907 and 2008 is mentioned and then the article mainly discusses the 2008 financial crisis and the causes of its occurrence. The 2008 financial crisis is also called the Subprime Mortgage Crisis which began in 2007 and is closely related to the concept of securitization. The financial crisis of 2008 brought a huge impact on the world economy. The conclusion would be drawn, and the main revelation would be discovered in this paper. This article wants to show that financial crises are closely related to each other. We can find similar cases from the previous crisis and bring them into the new crisis to find more perfect solutions. Experience of failure should be prevented in the future.