The financial crisis of 2008, also called the Great Recession and the global financial crisis of 2008, began with the collapse of the housing market in the United States. Many factors contributed to the deterioration of the real estate market during this period. Some of these factors included: subprime lending, the housing bubble that peaked in 2005-2006, government policy and regulation, and faulty mortgages. This turning point in the real estate market has affected more than just the real estate market, with all the personal and government additions involved. In turn, the unemployment rate decreased with this event, evictions and foreclosures skyrocketed, faulty and risky loans were also given, which created problems in the banking system. This led to many business bankruptcies, and the recession was not predicted, so it began to hit the economy and the United States hard. The U.S. housing bubble was like many other housing bubbles that occurred nationally. The housing bubble was caused by a rapid increase in real estate and home values, and low-income individuals and families were purchasing larger homes. There were lenient credit terms which will be discussed later in the document and which helped give everyone the opportunity to purchase a home. With the affordability of development and housing where it was at the beginning in 2005-2006, when the housing bubble began to peak, real estate developers began to buy more land and build more single-family and detached homes. while achieving higher profits than in previous years. We can see the direct effects of the housing market bubble by looking at the number of homes sold between 2005 and 2007. In 2005, over 1,283,000 single family homes were sold in the United States. -are-still-being-felt-five-years-article http://spectator.org/articles/42211/true-origins-financial-crisis http://economix.blogs.nytimes.com/2009/02/25/ deflation-1929-vs-today/?_php=true&_type=blogs&_r=0 http://oregonnomicanalysis.com/2012/09/24/checking-in-on-financial-crises-recoveries/http://www.economist. com/news/schoolsbrief/21584534-effects-financial-crisis-are-still-being-felt-five-years-article http://www.britannica.com/EBchecked/topic/1484264/The-Financial-Crisis-of- 2008-Year-In-Review-2008http://www.nytimes.com/2011/01/26/business/economy/26inquiry.htmlhttp://www.nytimes.com/2011/01/26/business/economy/ 26inquiry.htmlhttp://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%9308#Subprime_lendinghttp://en.wikipedia.org/wiki/Great_Recession