The world leader, who dominated the world at that time, was USA (Still Dominating) had a very strong economy and currency. The global financial crisis crunch came on screen in September 2008, when a number of American giant financial institutions failed to sustain or merge with some other institutions mainly due to not meeting the regulatory requirements or inability to comply with them pertinently. Due to the dominating power and instinct of USA, the country must leave a positive or negative impact on the world economy whenever the country's economy plunges or hike, because the country provides a platform to most of the countries to indulge in exports and imports with each other. American economy mainly emphasizes on credit as even, about every household borrow money for homes and loans frequently. Government of USA didn't apply any limit on the credit cards of the banks which is the main reason the current credit crunch hit them badly.
The failure of the major financial institutions like Lehman Brothers and Morgan Stanley and the mortgaging companies like Fannie Mae and Fredric Mac played a vital role to push the United States of America towards the brink of default. ...Show more