2.      Asset Bubbles: Inflated asset prices, such as real estate or stocks, that eventually burst when prices return to more sustainable levels, causing massive losses.

3.      Market Speculation: Risky and excessive investments by investors seeking high returns can create instability in financial markets.

2.      Regulatory Lapses: Lack of adequate regulation of the financial system can allow risky and mismanaged practices, increasing the vulnerability of the system.

3.      Political Instability: Volatile political situations, such as abrupt changes of government or internal conflicts, can affect investor confidence and destabilize financial markets.

2.      Economic Inequality: Disparities in the distribution of wealth can exacerbate financial crises, as the most vulnerable sectors of the population are the hardest hit.

3.      Public Perception: Negative perceptions of the economy can cause panic among investors and consumers, which can accelerate and aggravate a financial crisis.

1.        Trade Decline: Global financial crises can lead to a significant decline in international trade as economies struggle to stay afloat.

2.      Investment Drops: Foreign direct investment often falls during financial crises, as investors seek to reduce risk and protect their assets.

3.      Currency Fluctuations: Exchange rate volatility and currency devaluations can increase, affecting both developed and emerging economies.

·         National Economy:

1.        Recession: A prolonged economic contraction can be a direct result of a global financial crisis, affecting economic growth and stability.

2.      Unemployment: Rising unemployment is common during financial crises, as companies cut costs and reduce their workforce.

3.      Bank Failures: Failures of banks and other financial institutions due to massive losses and the inability to meet their financial obligations.

·         People's Daily Lives:

1.        Job Losses: Job losses and declining incomes severely affect families and communities.

2.      Reduced Access to Credit: Difficulty in obtaining loans and financing can affect businesses and consumers, limiting their spending and investment choices.

3.      Decline in Living Standards: Reduced purchasing power and increased economic insecurity can lead to a decline in quality of life.

It occurs when a government makes bad decisions with the manage of the country. Also, the abrupt changes in policy can start an economical crisis.

- Esteban

Social and Political Crisis

Global Infection