What the end of the financial crisis means for investors

The global financial crisis began in early 2007 when institutions were hit by problems with portfolios linked to US sub-prime mortgage loans, as the US housing market began to falter. But what started as a local and very specific problem soon widened to impact more financial institutions.

In September that year, the US Federal Reserve cut interest rates by half a percentage point – to 4.75pc, warning that the credit crunch could result in risks to the economy. It marked the start of an extraordinary period of monetary policy easing around the world as central banks moved to tackle the growing economic crisis.


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