The financial crises of 2007.

1. FINANCIAL CRISES (2000-2010)
The world didn’t survive fully by 1994 financialcrises and it’s
aftershocks till 1998 the worldfaced another big crises raised straightout
from US.
This was stared when a terrible incidenton 9/11 happened in New
York City. Right after the incidentthe dot COM company collapsedand US
faced a rapid bubble burst. Economy came into recession stage leaving
boom at 100% GDP due to investingin foreign markets. The solution was
the problem itself. Investors were afraidto do investment.
Green pan failedto maintain the reserve properly. In spring 2001, the
interest rate fallen from 6% to 0.5%. That remain 1% in the whole year of
2003. In June 2003, J.W Bush tried to maintain economy by various polices
such as
1. Owing a home as a piggy bank to get loan.
2. NINA (No income No asset) loans to everyone.
3. Forming governmentsupported enterprises of 2 mortgage-
financingcompanies Fannie Mac and Fredric Mac to give loans
that were difficultto get from outsides.
Situations came to at normal position by offering6% interest rate in
2006. But this wasn’t going long. In the very next year 2008 Lehman Bros.
and AIG bankrupted due to heavyloan burden. This was a shocking news
across the country. The loaned houses were also sold to German, China and
Greece for the safety of loans.
J.W bush once again addressedthe nation to make sure they will
make things better. New Economy plan was introduced by passing financial
bailoutand injecting700 MD over the economy especiallyto the banks that
were at their last hopes. Loans were given to all banks, forcefullyto those

2. too who weren’t willingfor it. This was done to wont let public know which
bank is going to bankrupt. Interest rate was at zero till Dec 2008. No more
loans to pay old loans.
Expectations went wrong. Before the government of PresidentBarack
H. Obama economy was at their collapsedsituation. On 17 Feb 2009
Obama signed the American recoveryand reinvestmentact. Its main goal
was same to inject787MD into economy streamline. Things worked, before
the 27 Jan 2010 everythingwas recovered. They became doers insteadof
talkers. This wasn’t the end of this crises. After U.S, IcelandSpain Germany
Greece Italy Portugal great British and Sweden faced the financial instability
till 2012. They all followed the Bailout policyto support their central banks
to recover the economy.