SPILL-OVER EFFECTS OF MORTGAGE CREDIT CRISIS IN USA ON EUROPE.

The banking industry in USA and Europe is, up to a great extent, connected to a global slowdown and to the world economy. Globalization and innovation, which used to be regarded as important factors for having contributing the global GDP increase, recently have showed us their downsides. Hazardous behavior of the US financial experts caused series of negative effects that soon after spread out all over the world thus made everyone feel the repercussions of their greedy undertaking. The economic instability and slowdown in developed countries, especially in US and Europe, may affect the economic stability and banking industry at global level to a great extent. The economic slowdown and declining banking industry in US and Europe in the last decade, left a bench-mark influence all over the world. The main point of this paper is the US subprime mortgage crisis and its impact on Europe. In the present paper, the roots of crisis are shortly represented as to help the reader understand why the effects of crisis have become worldwide. [ABSTRACT FROM AUTHOR]