Can someone explain the finacial crisis?

Can someone please explain this banking crisis? And how it effects other banks throughout the world?

• And also how and why this world wide economic crisis is unfolding and who is going to be hit hardest by it and why? Also when is the world going to be in a recovery and back on its ...show more

• Answer:

  1, greedy banks looking to make an easy buck lend to suckers who really can't aford it 2, banks find our that the suckers can't pay back the loans 3, banks foreclose to get back a small proportion of what they lent. many banks loan out more than they get in from their own customers, so they borrow from other banks. Due to 3, banks are now reluctant to lend to other banks, this means that those banks who leant out more than was prudent and to people who really shouldn't have had the loans are now running out of money.