FACTORS CREATING FAVORABLE CONDITIONS FOR A 'BUBBLE' TO DEVELOP IN THE REAL ESTATE MARKET IN THE USA AND INITIATE THE GLOBAL FINANCIAL CRISIS

The aim of the article is to analyze the determinants of the latest financial crisis. The starting point for this is the analysis of trends in the American real estate market because the dynamic development of this market should be considered as a so-called 'shock' leading to the burst of the present crisis. However, the intensive development of the real estate market in the USA would not have been possible if there had not been numerous factors favorable to its boom which are discussed in detail in the article. On the other hand, the creation of the 'bubble' in the real estate market and then its 'burst' with all the negative consequences, especially serious as they can wield enormous influence on the most risky segment of innovative financial instruments based on mortgages, contributed to the burst of the financial crisis.