The global financial crisis that is being dealt with in this paper is considered the greatest financial crisis ever seen by the world. The consequences were tragic for economies all over the world. Everything started in the US real estate market where a bubble of unsecured loans, which were guaranteed by other unsecured loans, was formed and made into bonds bought by many American and world banks. The explosion of this bubble has shaken up the entire world economy, and the consequences have resulted in significantly stricter controls of the financial sector, as well as a much larger state intervention on the market. The power that financial players have at their disposal is striving to regulate, and banks are required to execute stricter checks when they hold significantly larger reserves. The Rating agencies are obliged to objectively assess the security risk of the company and the bond in order to maintain a safe business. Europe is feeling the effects of the crisis a year after America. The Mediterranean countries are seen as the biggest losers of the crisis given the enormous public debt that states have been able to raise during the crisis. Greece is, however, coming to the brink of bankruptcy before the EU intervened. Croatia has shown how much it is actually unprepared for crisis situations since the crisis most likely lasted the longest in Croatia from all EU countries. Issues with institutions and politics have shown the depth of corruption and the inability of those responsible to cope with the crisis situation. Today Croatia and Europe are seeing growth and prosperity, but unfortunately, the Croatian economy is prone to follow the world economic trends.