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Explain how problems in a small part of the financial markets, the US subprime mortgage market, could lead to a global meltdown, that is, the 2007-2009 financial crisis.

Financial Economics

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Conduct independent research on the following topic:

Explain how problems in a small part of the financial markets, the US subprime mortgage market, could lead to a global meltdown, that is, the 2007-2009 financial crisis.