Whenever the asset loses its face value, a financial crisis is said to occur. The Economic crisis can create adverse consequences such as fall in output, currency crashes, sovereign defaults, etc. There were many crises, and each of them had a different scale and level of impact. Our world is connected through currency markets, capital flows, and trade relations. Thus, if a crisis occurs in a country, it affects or transmits its crisis to all the other countries that are linked to that country.
The following are some of the World’s Most-Devastating Financial Crises:

Black Monday:
Black Monday crisis happened on October 19, 1987. There was a widespread stock market crash all around the world. The crisis started in Hong Kong, and it spread to Europe and the United States. Companies like Dow Jones dropped by 22.1%, and the company took nearly two years to reach their previous high in 1987. Many come up with explanations for the Black Monday economic crisis, but none of those explanations is conclusive.

Wall Street Crash:
The Wall Street Crash was one of the most shocking crashes in the United States Stock Market. The crisis started in the year 1929, and it came as a blow to the market in the 1920s. People thought that the markets would rise indefinitely and wealth would grow. There was a warning created in March 1929, and it was warded off by the National City Bank. The economy was not that great in the late 1920s. The construction activities, production of steel, and car sales were all going down. Due to easy credit, there were consumers with large debts, and the over-supply of wheat decreased prices and farmers were affected very badly. This crisis shook America and eventually affected the stock markets.

1973 Oil Crisis:
Crude oil costs increased, and the production was cut, specifically to Netherlands and United States when OPEC employed oil as a weapon with the Arab Oil Embargo against those who supported Israel in the war of Syria and Egypt against Israel.
Though the embargo lasted only five months, the effects are present even today. Japanese car makers began to make smaller cars, and this gave a great shake in the American market share. To conserve oil, United States enacted a 55 mph speed limit. The U.S President created the Department of Energy in the year 1977, and it developed the petroleum reserve of the country.

The Great Depression:
The Great Depression lasted the entire period between 1929 and the outbreak of World War II. It was the most prolonged and severe depression in global economic history in U.S.
The government raised the interest rates, and Investors were desperate to liquidate their stocks, but there was no money. The country went into a Great Depression, and many countries in the world were also affected by this crisis. Know More