Sequencing of the financial and economic crises:  Popular perception of the crisis origins: falling prices in the US housing market led to disturbances on the interbank market and finally to the financial crisis.
Actually, a complex set of conditions, causes and trigger factors made the crisis possible: –  1  First, basic conditions: disequilibria evolving over the last years:   Global imbalances inducing financial flows from emerging to advanced economies;    Increasing weight of the financial industry in the economy; in U.S.A. the share doubled since 1980 to reach about 8% of GDP in 20081;    Global interest rates – arguably at least for some time too low;    Related trend to household indebtedness, partly fueled by policies expanding homeownership to the poor2;  Bank for International Settlements.