Introduction

th In 2008 there is big thing happen in all over the World .the 2008 US financial crisis . This financial crisis give the huge attack in all over the World .Making the international economic decline rapidly .so what happen in 2008 What make the crisis happen? How can survive that from the crisis? It is worth to analysis.

Background

In 2008 there is a lot of bank and insurance company failured their business operating which leaded to the triggered of the financial crisis that effectively stopped global credit market and require unprecedented government intervention. Finnie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corp )and this two company are US government sponsored enterprises. Both of them is taken over by government. At same time Lehman brother that is the fourth largest investment bank in US that they declared bankruptcy on the September of2008 after they can’t find a buyer who can support their company. Luckly the bank of American agree to purchase the Merrill Lynch which is the card coupons company in the US. The American international group also got 85 billion injection by the federal government.

After on September 25 th 2008 JP Morgan Chase agree to purchase the asset of Washington Mutual in what was the biggest bank failure in history .Actually by September 17 2008 more public corporations got failed for bankrupt in US. So these failures cause a crisis confidence that make bank reluctant to lend money amongst themselves or for that matter to anyone

So the detail reason lead to the financial crisis in 2008 we will analyze it step by step.

Marketing instability

The marketing instability was the cause by many factors .chief among them a dramatic change in ability to create a new line of credit Which dried up the flow of the money and slowed the new economic growth and buying and selling of the assets. There are many financial institution were left holding mortgage backed asset which had...