Financial crises often begin with structural deficit problems exacerbated by economic downturns, which can lead countries to default on loans and investments amid panic. This occurred in the 1994 Mexican Peso Crisis and 1997-1998 Asian Financial Crisis, spreading from Thailand to other East Asian nations. The 1998 Russian Crisis and 1999-2002 Argentine Crisis also resulted from debt and currency issues. The 2008 Global Financial Crisis originated from the bursting of the US housing bubble and near collapse of its financial system tied to mortgage securities and credit default swaps.

1. Y376 International Political Economy September 10, 2009

5. Depreciation of Asia Currencies

9. House Prices in the UK 1975-2005

13. Heilegendam Summit in 2007 L to R: Tony Blair, Romano Prodi, Vladimir Putin, Nicolas Sarkozy, Angela Merkel, George Bush, Stephen Harper, Shinzo Abe and Manuel Jose Barroso

14. 2009 L’Aquila G8 “Family Photo” L to R: Taro Aso, Stephen Harper, Barack Obama, Nicolas Sarkozy, Silvio Berlusconi, Dmitry Medvedev, Angela Merkel, Gordon Brown, Fredrik Reinfeldt, Jose Manuel Barroso