<span>There is a plenty of definitions for globalization, but we can use a generic one to understand this phenomenon: the globalization is the modern state of the world, when people, culture, information, technology, products and many other things can be, easily trade between all nations (almost all) of all continents. This state has its origins in the early 15th/16th centuries, with the maritime expansion.</span>
A bubble is a situation in which there is a rapid escalation of <span>asset prices which is later followed by a contraction of the same. When there is a surge in asset prices which is unwarranted by the fundamentals of the assets that are in question and an exuberant market behavior supports it, a bubble is created. When nobody buys anymore and starts selling everything off then the bubble is deflated.
In that period, many people started buying homes with mortgages with adjustable rates. When the stocks started rising so did the prices of mortgage interest rates and people started realizing they couldn't pay back their loans and started losing homes. When the homes were taken away, there was a realization that the houses were not worth at all the price that was owed and that banks would suffer severe losses because of the bad mortgages that they gave. This led to the 2008 recession.</span>
