THE IMPACT OF THE DEBT OF THE BANKING INSTITUTIONS IN THE USA ON THE EMERGENCE OF THE 2008 FINANCIAL CRISIS
THE IMPACT OF THE DEBT OF THE BANKING INSTITUTIONS IN THE USA ON THE EMERGENCE OF THE 2008 FINANCIAL CRISIS

Summary/Abstract: The purpose of this paper is to investigate the impact of bank indebtedness in the period before the 2008 crisis on the global financial crisis. This paper uses methods of analysis of the available literature and quantitative methods of analysis. The research in this paper has shown that investment banks in the United States, with their indebtedness, directly influenced the emergence of the crisis, due to the principle of contingency of financial institutions in the world and joint work. From this paper we can conclude that the decline in the value of speculative financial instruments securitized by investment banks in the United States, contributed to the decline of a large number of financial institutions in the world. The impact in the direction of capital destruction and disruption of investor confidence contributed to a sharp decline in financial markets and the beginning of the 2008 crisis. As a suggestion for future research, we believe that studies can be conducted on a larger scale and by more researchers, focusing on individual financial institutions and their impact on financial markets.

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