The document summarizes the events that led to the 2008 financial crisis in the United States. Banks began offering loans to borrowers with no verified income, jobs, or assets (NINJAs). When housing prices fell, many borrowers could no longer afford their mortgage payments. This caused mortgage-backed securities and related financial products to plummet in value as borrowers defaulted. As a result, banks suffered major losses and lending froze up. This credit crunch had ripple effects across the broader economy as spending and jobs declined. The root cause was a lack of proper banking regulation that allowed risky lending practices to proliferate.