Global financial crisis  Genesis of global financial crisis The proximate cause of the current financial turbulence is attributed to the sub-prime mortgage sector in the USA.
At a fundamental level, however, the crisis could be ascribed to the persistence of large global imbalances, which, in turn, were the outcome of long periods of excessively loose monetary policy in the major advanced economies during the early part of this decade (Mohan, 2007, Taylor, 2008).