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. There were many factors that contributed to the worsening of this real estate market turn during this period. Some of these factors included: subprime lending, the housing bubble that peaked in 2005-2006, government policy and regulation, and bad mortgages. This real estate market shift hasn't just affected the real estate market, with all the personal and government additions involved. In turn, with this event the unemployment rate dropped, evictions and home foreclosures skyrocketed, and faulty and risky loans were also granted which created problems for the banking system. This led to the failure of many businesses and the recession was not expected, so it began to hit the economy and the United States hard. The United States housing bubble was like many other housing bubbles that have occurred nationwide. The housing bubble was caused by rapid increases in real estate and home values, and low-income individuals and families purchased larger homes. There were lenient credit terms that will be discussed later in the paper that helped create this ability for everyone to buy a home now. With development and housing affordability at the level it had begun in 2005-2006, when the housing bubble began to peak, land developers began purchasing more land and building more homes and custom homes while making higher profits. higher than in previous years. We can see the direct effects of the housing market bubble by looking at the number of homes sold from 2005-2007. In 2005, over 1,283,000 single-family homes were sold throughout the United States. -are-still-being-felt-five-years-articlehttp://spectator.org/articles/42211/true-origins-financial-crisishttp://economix.blogs.nytimes.com/2009/02/25/ deflation-1929-vs-today/?_php=true&_type=blogs&_r=0 http://oregoneconomicanalysis.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-articlehttp://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