The 2008 global financial crisis explained in simple terms.

Greed is good, right?

Well, not really. The consequences of that greed are still present nowadays. But what was the cause of the global financial crisis in layman’s terms?

It all started in AIG, the American International Group. As flows started to pour into the US in the early 1990’s, domestic banks had a lot of cash that wasn’t really moving so, they have decided to start lending this money at looser rates. Most people could get home loans that were previously unattainable.