U.S. Economy and the Great Recession

The global recession refers to a severe contraction of liquidity, especially in the global financial markets.
The crisis started in the year 2007 as a result of the bursting of the housing bubble in the US. Initially, there were successive reductions in the prime rates, which made it possible for the banks to issue mortgage loans at rates that were lower to millions of customers, most of who could not have qualified for them.