Since the beginning of the crisis in late 2008, the U.S Government and Congress have passed a number of bills into law. These bills have been designed to inject liquidity into the financial markets, increase availability of credit, and encourage consumer spending. A number of regulations have also been introduced to curb practices in the sub-prime mortgage industry.

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Experts have citied a lot of reasons for the financial crisis. Due to increased demand for housing, and government policies encouraging subprime mortgaging, banks lowered minimum requirements and credit ratings of potential borrowers became less important.

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While there’s no widely acceptable definition of a recession, virtually all economics agree that a recession is a period of declining economic activity. Businesses experience little growth causing the employment rate to fall, price of housing drops, and the Gross Domestic Product (GDP) falls by 10% or more within a 12 month period.

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