The credit or financial crisis 2007-2008 started in the U.S. Many people in the U.S. have got mortgages and later they couldn't pay back. These mortgage defaults caused many mortgage lending banks and companies to lose significantly and go bankrupt. As a result the housing prices started to fall causing a negative wealth effect and fall in consumer spending. The crisis was spread almost all of the countries in the world later. Why and how other countries were affected by the crisis originated in the U.S.