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Give an overview of the financial crisis: the use of subprime mortgages, mortgage backed securities and CD Swaps; the failure of Bear Stearns and the

Give an overview of the financial crisis: the use of subprime mortgages, mortgage backed securities and CD Swaps; the failure of Bear Stearns and the governments intervention; the failure of Lehman Brothers and the governments refusal to intervene; how the government bailed out AIG (discussing what AIG did that made it vulnerable and in need of a bailout why it was too big to fail); and the governments capital infusion of the banking system (discussing what the government did and why the banks did not want the government to do it that way). (Your answer must be a minimum of two well-reasoned paragraphs. 10 points)

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