Buy an essay on The financial Crisis from Subprime Problem

The whole world is now facing a crisis, called the banking crisis, financial crisis, economic crisis of 2008.
The most striking effects of the financial crisis in the United States were the nationalization of mortgage agencies Fannie Mae and Freddie Mac, the largest bankruptcy backbone of U.S. banks and nationalization of insurance giant AIG (the Fed has bought 80% stake in American International Group (AIG) the world’s largest insurer). And in September 2008 in the U.S. mortgage crisis caused a liquidity crisis of global banks.
As a result the financial system of the United States was in a difficult situation. Many experts believe that actions by U.S. authorities during the crisis could lead to a devaluation of the dollar and undermine confidence in the American economic model, which is based on stimulating final demand on cheap credits.
So now many economists ask a question: will the current crisis change the principles and ideas of capitalism that have been enshrined for many years?

The origins of the financial crisis
In the U.S. financial crisis began in 2007 with the mortgage crisis in the subprime sphere, which appeared due to huff bubble in the mortgage market, caused by low-interest rate of the Federal Reserve, excess liquidity, and wrong actions of mortgage companies to the borrowers. A chain reaction throughout the world was caused by the fact that the mortgage companies failed, trying to get out of difficult situations with poor-quality mortgages, and began to sell mortgages of institutional investors in the U.S. and other countries.
Gordon (2009) writes that the forerunner of the financial crisis of 2008 was a mortgage crisis in the U.S., the first signs of which appeared in 2006 in the form of reducing the number of homes for sale, and in early 2007 escalated into a crisis subprime market.
Very soon the problem with lending felt the reliable borrowers, and later the mortgage crisis began to transform into a financial and began to affect not only the United States. By early 2008 the years of crisis has been the world and gradually began to appear in the general slowing in the volume of production, reducing demand and commodity prices, rising unemployment. (Shiller 2008)

The origin of the crisis some economists associate with the following factors:
– general economic cycle – high prices for commodities (including oil)
–the overheating of the stock market
–the overheating of the credit market, that resulted in the mortgage crisis
– the application of new techniques and unaudited financial instruments.
The American bubble had blown – and hit the entire global economy. In fact, the U.S. mortgage companies gained unfair, poor speculative clients, and when they stopped to pay back the debts, they began to resell mortgages to other companies around the world, who have suffered huge losses.
Another important thing that is worth mentioning – is globalization of the economy. The American economy has become the most important part of the world economy, the global leader. The U.S. financial sector is the most important among all other financial markets in the world, and not only the financial sector. The last 10 years there was a massive export of production abroad, and this deformed the course of a normal economic cycles.
Besides the fact that the U.S. was in a deep financial crisis and it had caused serious difficulties within the country, it also affected the entire world economy and caused the world financial crisis. Because of this crisis, a wave of collapses of stock exchanges appeared, and the world stock markets in general have suffered more than the United States itself. One obvious reason for that is that the world economy is based on the dollar as the global equivalent of trade, and problems in the U.S. financial sphere transformed to the global financial problems throughout the world.
From all the said above the main claim can be that it is inevitable to establish a new international financial and monetary system that is not dominated by the United States.
There is a claim that the current economic crisis will lead to the decline and fall of American-style free market capitalism.