2008 Global Economic Crisis

The purchasing conditions for housing loansHousing loans have become easier, the housing market and mortgage market have grown due to the low interest-excess liquidity policy implemented by the USA since the early 2000s. As home purchases increased, housing prices rose, and with the increase in housing prices, home buying transformed into an investment tool. On the other hand, mortgage loans were converted into derivativeDerivative financial products through securitizationSecuritization and these products were offered to national and international investors. Thus, the national mortgage market has turned into an international market. The use of careless loans in the mortgage market, which constitutes the financial sector of the housing market, insufficient supervision of lending institutions by supervisory and regulatory bodies, mistakes of credit rating agencies, and inadequate information of investors has led to the rapid growth of the housing sector and the mortgage market in a fragile manner at both national and international level. As of the end of 2006, housing prices started to decrease due to the saturation of the housing sector. FED tight monetary policyMonetary policy practices an interest rate increases caused repayment problems in the mortgage market, and for this reason, banks could not collect the loans they gave. Banks began to experience resource shortages due to their inability to collect the loans they gave, and this situation brought about the financial collapse of banks due to blockages in the financial system. In this context, the US mortgageUS mortgage crisis crisisCrisis emerged as a national crisisCrisis. Due to the structure of the US mortgage market, the fact that this market includes international investors who purchase derivativeDerivative financial products resulting from securitizationSecuritization, and the fact that the US is one of the world trade centers, the national crisisCrisis that emerged in the US mortgage market turned into a global economic crisisGlobal economic crisis. To combat the effects of this crisis, precautionary policiesPrecautionary policies have been announced at national and international levels. In this regard, efforts were made to reduce the effects of the crisisCrisis through monetary policyMonetary policy and fiscal policyFiscal policy practices. In this study, it is aimed to explain the 2008 global economic crisisGlobal economic crisis with all its elements, starting from the national dimension and reaching the international dimension, and to reveal the process of combating the crisisCrisis. In this context, the study extensively discusses the causes, historical process, national and international impacts of the 2008 global economic crisisCrisis, as well as the national and international measuresEconomic measures implemented in response to the crisis, and the dimensions of this crisisCrisis in Turkiye.