2. People take too big credits The purchase of toxic assets Government intends to fix the exchange rates The economic growth and the rapid free market globalization.

3. People take credits and after that they are irresponsible to pay them. Total Household Debt Outstanding versus Disposable Income (billions $) Source: Bureau of Economic analysis(income); Federal reserve flow of funds.

4. The government policies are in some level bad and banks do not protect themselves well Bank of America develops and embraces computer models that were supposed to improve a bank's ability to determine the risk of a particular type of loan.

5. Another reason for the financial crisis could be the economic growth and the rapid free market globalization. -A boost in economic growth. -A deepening wealth-poverty gap. To combat the latter, the U.S. government encouraged subprime credit, which, although it was well intentioned, resulted in the transnational banking and economic crisis that followed.

6. coherent self-fulfilling expectations contagion rational herd behavior A research made by Barisik and Tay reports the Second-Generation Crisis Model according which, a currency crisis occurs due to:

7. M. Boskin` perspectives on the elimination of U.S. banks' toxic assets in order restore the credit market in 2009 in the country. The author asserts that the initiative of the federal government to buy toxic assets with the 700 billion U.S. dollars Troubled Asset Relief Program (TARP) has resulted to capital infusions. He believes that these toxic assets were the reason behind the crisis in the credit market.