The Global Financial Crisis of 2008-2009 refers to the massive financial crisis the world faced from 2008 to 2009. The financial crisis took its toll on individuals and institutions around the globe, with millions of Americans being severely impacted. Financial institutions started to sink, of which many were absorbed by larger entities, and the US Government was forced to offer bailouts to keep many institutions afloat. Discuss the causes of the crisis (financial integration, capital flows and global imbalances), the spread of the crisis (contagion through banks, investors, and other channels), and policies to reduce country vulnerability in the future (reserve accumulation, capital controls, prudential policies, and changes to the global financial architecture) When referring to the Global Financial Crisis, please be sure to include (1) The short term impact of the financial crisis on the economy (2) How it changed the housing market – include Fannie Mae and Freddie Mac (3)Interest rates and the decisions of the Federal Reserve (5) Collapse for Lehman Brothers (6) Bailout for businesses (7) generic economic variables such as unemployment, GNP, GDP, inflation, Keynesian economics, Laissez faire
