Banking Crises

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Banking Crises

Introduction

Banking crises can have serious repercussions for a country and its global economic relations, especially those related to exports and tourism. Recently, the United States has seen several banking crises impact international business - for instance, the COVID-19 economic crisis and the 2019-2020 repo market crisis are just two examples. Each moment considerably impacts global financial sectors and businesses dependent on exports or tourism for sales. This essay will focus on recent US banking crises and their effects on international trade.

The 2008 Financial Crisis

In 2008, America experienced its last banking crisis, known as The Great Recession, caused by a sudden housing market collapse that resulted in significant financial institution losses due to investments made heavily into mortgage-backed securities such as Lehman Brothers and Bear Stearns. The two major institutions eventually...