Current Financial crisis

So what's exactly happening in US. Economic crisis. Yes? Why? What triggered it? Mortgage loans! Well to know more, here's what exactly happened. It all started when the US banks wanted to exploit the business by offering mortgage loans with no security and no check on financial condition of the borrower. Result: Several people, the so-called educated, elite, Americans, just jumped in and got huge loans that helped them own monstrous houses. A person drawing $80k per annum can dream of owning a house worth $300k - 450k, nothing more. But the reverse happened. Is there any limit on People's dreams or wishlist or greed? No! Banks found to their disbelief that several people failed to pay the monthly principal right from first month. That caused a huge panic. Immediately, prices fell. It led to a lack of liquidity in the market and this mortgage loans triggered tremendous pressure and eventual collapse of Finance institutions in US. As liquidity became the need of the hour, people stopped purchasing and businesses took a hit as sales fell drastically over several quarters. It was not until June-July 2008 that the government and market realized the impending crisis. Today, the government is taking enormous efforts to improve the health of the ecoomy by pumping money into these businesses, thereby trying to build the people's confidence on the American Economy. The damage however is done! When banks collapse, it usually takes 5 years for a nation to stabilise. So you heard that Auto companies received the relief package, I wouldn't call it a bail out. How has the world's economy being hit due to this single economy. Well, as there is no liquidity in the market, people have no money to buy products. As a result, exports from China and India have steadily decreased and currently almost at standstill. Now this inturn has hit Singapore, which uses itself as te world's warehouse. Its economy thrives just on two big pillars - Trade (Ports, logistics) and Tourism. As a result, there has been an economic slowdown and many countries have been affected by this more than ever, in this era of gloablization. For Instance, the fall in dollar value, has hit Indian IT industry, the very foundation of the New India. Thus, companies have resorted to layoffs and this inturn leads to decrease in consumption which will lead to a decrease in production. And thus, this happens in a vicious cycle! We are right at the center of that crisis. When we come out of this situation is a question at the lips of every economists! The answer, Time will tell!