Debacle is a term applied to situations that turn into disaster or destruction when they come to an end. The French word "weak" , the word was transformed until it reached a staff, translated into Spanish. In economics, the financial debacle is the widespread and profound decline in the markets, that is, a crisis in the institutions that commercialize different products. Financial debacles are due to different causes, firstly to a small economic crisis that a nation or economic entity can suffer, due to issues such as unemployment, low production or shortages.
One of the most famous debacles in the history of the world economy was the Great Depression, a global crisis that began in the United States in 1929, as a result of the stock market crash on October 29 (called Black Tuesday) Although the starting time varies depending on the country being analyzed, since in some it began as early as 1930. During its development, the unemployment rate, poverty and the decline in international trade increased in most of the affected countries. Its culmination occurred in mid-1939, when countries began to improve. Today it is taken as a model of economic catastrophe on a world scale, where its consequences are studied in current scenarios.
Another great example is that of the Great Recession, beginning in 2008 and ending in 2015. It was called, by some specialists, "the crisis in developed countries . " It was mainly caused by the high prices of raw materials and high world inflation. It affected American, Latin American, European, Asian and oceanic countries.
