Financial crashes

A financial crash is a sudden and widespread decline in the value of financial assets, like stocks or real estate. It often happens when investors lose confidence, causing panic selling and rapid price drops. This can lead to economic turmoil, as businesses struggle, jobs are lost, and people’s savings are affected. Crashes are usually triggered by a combination of excessive borrowing, risky investments, and unforeseen events, which expose underlying vulnerabilities in the financial system. While sometimes unpredictable, they highlight the importance of prudent regulation and diversified investments.