This review of the 2008 financial crisis discusses triggers crisis, direct consequences, and policy responses to crisis. Pre-crisis condition is analyzed in linear time order: Federal monetary policy, with motivation stimulate economy, set loose lending criteria facilitated increase subprime mortgages. Based on mortgage, credit default swaps (CDS) emerged as a new derivative arbitrage speculati...

This paper exams the impact of high levels bank debt, leverage, credit obtained from government banks and cash reserves in long short terms investments firms main Latin American countries after this crisis. For purpose, it is applied a difference-in-differences test sample more than 500 public private firms, using hand-collected data firms’ governmental dependence. The review period considers f...