By Brian Perry
The events of the 2008 credit crisis and their consequences will shape the investment landscape for decades to come. Therefore, investors who wish to be successful need to have a comprehensive understanding of the credit crisis and the changes it has produced in the financial community. This tutorial will provide readers with a broad-based overview of the credit crisis. It's an excellent starting place for developing an opinion about the future of the global financial environment.
The tutorial begins with a brief history of Wall Street, an analysis of the differences between investment and commercial banking, and an overview of the disappearance of the classic investment bank. In the second chapter, we'll discuss the crisis in more detail, provide a look at some famous historical crises and compare their causes with the 2008 credit crisis. The third and fourth chapters will look more closely at the credit crisis; first by examining its origins and then by analyzing the events that prompted its onset. The tutorial will then provide an overview of the most important events that occurred during the credit crisis before examining governmental efforts to mitigate the crisis and prevent the systemic collapse of the financial system.
We'll also examine the crisis's impact on financial markets and investors, and provide an overview of its impact on the financial markets. You'll also find some timeless investment lessons that the credit crisis has reinforced and that can help you succeed through future market downturns.
While this tutorial is as comprehensive as possible, readers should remember that the credit crisis consisted of an amazing array of previously unimaginable events. In addition, future accounts of the credit crisis may differ somewhat from this tutorial, based upon the perspective that will come from examining events with additional hindsight.
(For background reading, see the Financial Crisis Survival Guide.)
Credit Crisis: Wall Street History
InvestingThese indicators can illuminate the depth and severity of problems in the credit markets.
InsightsA financial crisis is a situation in which the values of assets drop rapidly.
Personal FinanceRiding the bubble takes timing, a clear understanding of the market and, most of all, a lot of luck.
InsightsTake a look at several of the most prominent financial crises of the 21st century, and understand why the Great Recession was a truly remarkable contraction.
InsuranceThe economic environment of the late 1970s and early 1980s created the perfect storm for a banking crisis.