Describe the 2008 financial crisis as a modern-day bank run. Custom Essay

The 2008 financial crisis placed enormous pressure on the U.S. financial system following a sudden loss on the value of financial assets in investment banks and financial institutions dealing with mortgage- backed securities. The financial crisis led to the global recession, and the Federal Reserve’s efforts to bail out failing banking institutions put doubt on the strength of the U.S financial system. In any case, there was a gradual fall in house prices and rising unemployment while subsequent government intervention was seen as controversial.