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However, there lacks consensus and financial instability continue to be witnesses occasionally.This paper will describe the nature, causes and probable solutions of the major financial crisis experienced in the United States between 20.Banking panic or systematic banking crisis is a situation in which major financial institutions face runs.
The public policies applicable to deal satisfactorily with the identified causes.
Some steps taken by congress and Obama government to deal with the matter, and lastly whether the adopted measures were effective or not.
The third characteristic of the great recession was the international financial crisis.
For a country that uses the fixed exchange rate, a situation may arise when the financial sector is compelled to devalue the currency of the nations to accommodate speculative attacks.
The paper also addresses the fine details of the crisis highlighting on some issues such as; questions of who was responsible for the undesirable financial condition.
Some basic theories relating to the cause of the challenge.
Nature of the crisis Firstly, the great recession has a direct link with the major banking crisis witnessed during the period.
Bank in the entire United States were suffering massive and rapid withdrawal of financial by depositors; a phenomenon known as a bank run.
Some economists and scholars insist that bubbles never experienced during the United States during the recession.
However, all indications show that the situation was almost getting to that level (Nanto & Library of Congress, 2009).