Stock Options and Credit Crisis

That is the reckless fiscal policy of the Federal Reserve under Alan Greenspan.
The credit crisis bring two groups of people together. Home owners who took on money from their mortgages and investors who represent their pool of money.
Those mortgages was used to purchase houses and money comes from a number of large institutions such as Sovereign Funds, Pension Funds, Mutual Funds, etc. They are connected through the financial brokers and investment banks on Wall Street.
Traditionally, investors who look for safe, secure, long term investments placed their faith in the US bonds with high interest rate. But, the burst of the Nasdaq bubble that was compounded by the Sep-11th made Alan Greenspan to slash interest rate to 1% to stimulate the economy. A move that years later was called to be responsible for the credit market crash.
With only 1% interest rate, investors was turned away from bonds and forced to find other high-returned and riskier investments. But not all 'investors' were disappointed by this financial reckless move of the FED.
Investment banks loved it because they could participate in global Carry Trade - borrow cheap money and invest in foreign asset and bonds such as Australia, Japan and China where interest rate was a lot higher.
Also, that made banks go crazy with leverage - their primary method of making money. Investments bank made tons of money and other investors on the sideline drooled all over and wanted a piece of the actions.
Where there is a demand to make money, there is supply from Wall Street. That was very true at that time because banks found a way to bring investment in by connecting investors with home owners. Desire to speculate and very low interest in the US made this reckless bet very possible and lucrative.
Credit Crisis or Credit Crunch of 2008 blew up the world's economy in 2008 was the event that most people could not see. However, tracing back history, it isn't that hard to realise the root cause.
Give attention on learning cash management so you will be guaranteed that your finances will grow. Another mistake committed by new traders is jumping to trading techniques and strategies that do not them at all. Most traders are very eager to find trading solutions that will make them a millionaire overnight. This assumption is wrong.
To prevent this from happening, the trader should put in mind the value of learning. It is also important that they should learn the value of conservatism. This means that they don't have to count profits when they don't see it on flesh.
As painful as it when stock goes down to Zero, you lose all your money you initially place in it. Selling stock can cause you to lose A LOT MORE money that you initially invested. If Google stock shoots up to 550$ (it is such as a crazy stock that a huge jump like that is not an exaggeration), you would lose 110$ x 100 = 11,000$ because you need to spend 55,000$ to buy back and return the stock. While it is unlikely Google can go to 1,000$/stock but who knows. There is no legal cap to how high a stock can go up to. That means you can expose yourselves to an UNLIMITED risk. Anyone wants an unlimited risk? Please don't.