Global Financial Crisis.

It is believed that the Global Financial crisis began in 2007 when there was loss of confidence by US investors in the value of sub prime mortgages cause a liquidity crisis.

In result US Federal Bank injected a large number capital into financial markets.
In 2008 crisis got more worse and it became highly volatile.
In United States housing market has to suffer greatly because many home owners who had taken out sub prime loans found that they were unable to meet the payment of mortgage.The values of homes plummeted and then the borrowers found themselves with negative equity.There were large number of borrowers defaulting on loans then banks faced situation where the repossessed house and land was worth less on today's market then the bank had loaned out originally.
In 2008 there was collapse of Lehman Brothers which begin a new phase in global financial crisis.Governments all around the world struggled to rescue this big financial institutions because of the fallout from housing and stock market collapse worsened. Many institutions faced continued to face this liquidity issues.
Us government proposed 700 dollar billion rescue plan but it failed to pass because some members of US Congress objected to use a huge amount of taxpayer money being spent to bail out Wall Street investment bankers.
In 2009 President Obama proposed federal spending of about one trillion dollar to improve the state of financial crisis.
Australian government also proposed almost 47 billion dollar to help boost the economy.It included:

• 6.6 billion dollar for 20,000 new homes.
• 3.9 billion dollar to insulate 2.7 million homes.
• 14.7 billion dollar for schools.
• 890 million dollar for infrastructure and road repairs.
• 12.7 billion dollar for cash bonuses,950 dollar for every Australian tax payer who earned less than 80,000 dollar.
• 2.7 billion in small business tax beaks.     

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