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It is natural that everything began with a risky mortgage-back securities market, which was formed through the securitization of risky mortgages that were issued to the poorest Americans, the main and almost sole source of income of which is wages. According to Shiller (2008) the loss of work for this group of Americans means the lost opportunity to serve the obligations under the mortgage loans, which means that the nomination of their houses and flats for sale and as a consequence, given the massiveness of this phenomenon, a significant drop in their prices. (Shiller 2008)
The collapse of prices for mortgage securities led to a cheapening of the assets of a large number of mortgage and investment banks, and then began falling stocks and securities of these financial institutions, and then other corporations, and not only in the United States.
Apparently, the largest U.S. financial companies, the most hit by the crisis, were not aware of the risks and threats to this business. Accordingly, all monetary authorities of the country, which conducted the independent regulation, have been caught unawares.
Deregulation of the financial sector, de facto, led to the sudden increase in the use of new financial instruments. The general trend towards deregulation and liberalization of the financial sector contributed to the emergence of systemic risks, which became apparent only during the crisis. Most of the non-banking financial sector (hedge funds, investment banks, private equity funds) is outside the traditional regulatory or is much less regulated.
In practice it is very difficult and practically impossible to predict the nature and extent of the damage that the current economic and social crisis will create.
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.
But the answer to the last financial crisis can be to establish the new kinds of financial institutions that could have managed it. It is time to recognize what is happening and to take fundamental steps to restructure the institutional foundations of the housing and financial economy. Schiller (2008) argues that this means taking both short-run steps to alleviate the crisis and making longer-term changes that will inhibit the development of bubbles, stabilize the housing and larger financial markets, and provide greater financial security to households and businesses, all the while allowing new ideas to drive financial innovation. (Schiller 2008)
The solution means following the next goals:
1) Improving the financial information infrastructure.
This means that the most up-to-day and the most enhanced information about the financial situation should be delivered, better financial advices should be given. It will result in the better consumer protection to larger segments of society. These steps will also result in that all consumers and households will be able to make financial decisions based on the best possible variant that really suit it, rather. Better financial information and decision making would prevent and also inform about the incidence of bubbles.
2) To expand the sphere of insuring to cover a wider range of economic risks of financial markets.
3) To create certain retail financial instruments (for example continuous-workout mortgages) and home equity insurance in order to provide greater security to consumers. (Shiller 2008)
But the most important mechanisms are needed globally to change the situation now and to prevent similar crises in the future. The U.S. has dominated in the world economy (as dollar is the main world currency), so the U.S. of course, greatly enjoyed this situation and got a very substantial benefits from such a near-monopoly position.

Conclusion
The task that confronts the U.S. financial system today is to eliminate fragility that emerges as a direct result of flaws in the structure and the regulation of the system itself. (Kregel 2008)
As a result, the crisis can be briefly described as: “the collapse of global financial pyramid”.
The main reasons come from the U.S. global crisis include the unsatisfactory policy of state regulation, the bursting bubble in real estate market, as well as imbalance and lack of transparency of the market credit-default swaps.
Last but not least the emergence of a recession contributed to the failures of government, in particular, the late surge the base rate the Fed, condoning banks issuing mortgage loans to low-income and the decline in government insurance of mortgages, lack of control of the market swaps, inflexible government reaction to “treatment” of the primary causes of the crisis.
Lessons from global financial crisis underscore the need for a balanced approach to the speculative pursuit of money and no accumulation of the secured obligations, and distressed assets, as well as demonstrate the need for competent government regulation and control over the functioning of economic systems and institutions.
Now the American financial system, despite the very complex legislation and the elaboration of various mechanisms, had faced a serious failure. This is a reason to examine the functioning of the American financial system.

References
Dent, Harry S, 2009, The Great Depression Ahead: How to Prosper in the Crash Following the Greatest Boom in History, New York: Free Press
Gorton, Gary B, 2009, Slapped in the Face by the Invisible Hand: Banking and the Panic of 2007. Available from
Gordon G.B., 2009, Information, Liquidity, and the (Ongoing) Panic of 2007, Available from
Kregel J., 2008, “Minsky’s Cushions of Safety: Systemic Risk and the Crises in the US Subprime Mortgage Market”, Levy Institute of Bard College, Public Policy Brief No 93, 2008
Shiller R. J., 2008, The Subprime Solution: How Today’s Global Financial Crisis Happened, and What to Do about It, Princeton University Press