Economic Crisis Origin, Evolution And Future

Crisis
The crisis starts to grow around 2000. Along of ten years approximately, the economy was “fine”, everyone got a house, a car, a set of furniture (for them houses)… thanks to banks and in partalso thanks to institutions (FED) which kept the interest rates low.
For this reason, banks needed to make a lot of loans and the most important sub-primes (because them interest rate were higher)to got huge amounts of benefits. So, that brought a big housing bubble where the price of houses was growing exponentially.
Then, banks created different financial products with sub-primes andanother loans with less risk. That happened especially in USA although other countries as Spain had a similar situation.
This financials packages were released in the global market. As a result the“virus” was free and it was spreading so fast all over the world.
At the same time commodities, as oil or food, was increasing them prices due to speculation. Experts warned about the inflation which was10 - 20 year highs for many nations in 2008, because of excess money supply around the globe, monetary easing by the Fed, growth surge supported by easy monetary policy in Asia, speculation incommodities, agricultural failure, rising cost of imports from China and rising demand of food and commodities in the fast growing emerging markets.
As a result of all this, we have the “financial crisis”.In 2008 it bursts, the banks was seeing the bankruptcy just around the corner, even themselves didn´t know their levels of debt, therefore the different institutions as FED or BCE injected largeamounts of money in order to avoid the bankruptcy of the financial system. Consequently the economies went into recession because of the investment fell; the credit was stop due to uncertainty, consumptionfell too…
Today we have another big problem “the debt of states”, the states have been spending large amounts of money during the good period of economy and now they have a big debt with his...