INDEX

INTRODUCTION …………………………………………………………....p.2

2. INTRODUCTION TO THE CRISIS .…………………………………...p.4

3. THE FINANCIAL AND CONSTRUCTIVE CAUSES. ………………...p.5

4. CONSEQUENCES

4.1. FINANCIAL MARKETS 4.1.1. 2007 ………………………………………………………….p.9 4.1.2. 2008 ………………………………………………………….p.11

4.2. CONSTRUCTIVE BUBBLE ……………………………………...p.12

5. GOVERNMENT INTERVENCION ON…

5.1. FINANCIAL INSTITUTIONS FEDERAL RESERVE AND CENTRAL BANKS ………………..p.19 5.1.2. EMERGENCY ECONOMIC STABILIZATION ACT …....p.21 5.1.3 BAYLOUTS AND FAILURES ……………………………...p.24

5.2. HOMEOWNERS 5.2.1. HOMEOWNERS ASSISTANCE ……………………….....p.26 5.2.2. THE HOMEOWNER AFFORDABILITY AND STABILITY PLAN ……………………………………………….....p.29.

6. INTERVIEW WITH RICARD FERNANDEZ…………………………..p.31

CONCLUSIONS…………………………………………………………….p.35

AUTOAVALUATION………………………………………………………..p.36

BIBLIOGRAPHY AND SOURCES INFORMATION…………………….p.37

1.INTRODUCTION
My initial intentions were to elaborate a research project with the objective of comparing the financial crisis in USA and Spain that were and are going through. I was planning on finding all the similarities and differences that were most important or characteristic.

When I was half way on the research, I realized how extent the information was, so I reduced to the financial and banking part, and the construction bubble. I did this because I thought they were the most important or interesting (for me) subjects.

Finally, I changed it so that I would only work on the financial crisis in the United States because of the fact that firstly, it is were the whole crisis began, and secondly, because I found it most intriguing.

I chose to do this research project about this subject during my final weeks in First of "Batxillerato" because I felt it suited me best. After some time wondering about it, I realized that my