Global financial crises are severe disruptions in financial markets that can lead to significant economic downturns. These crises often arise from factors such as excessive borrowing, risky investments, or sudden loss of confidence among investors. When a crisis occurs, it can result in bank failures, stock market crashes, and widespread unemployment, affecting economies worldwide. Historically, notable examples of global financial crises include the Great Depression of the 1930s and the 2008 financial crisis, which was triggered by the collapse of the housing market in the United States. Such events highlight the interconnectedness of global economies and the potential for localized issues to escalate into worldwide problems.