Asset Backed Securities. Their Role within the Financial Crisis

Focusing on the subprime crisis of 2007, this essay analyzes the pivotal role of asset-backed securities in the ensuing global financial turmoil. It details the factors that triggered the collapse of the US real estate market and examines the processes that led to the recession affecting both the United States and the global economy. The study provides insights into the complexities of financial markets and the consequences of economic mismanagement during this critical period.