The global fnancial crisis (GFC) or global economic crisis is commonly believed to have begun in July 2007 with the credit crunch when a loss o! confdence by "# investors in the value o! sub$%rime mortgages caused a li&uidity crisis' This in turn resulted in the "# Federal (an) in*ecting a large amount o! ca%ital into fnancial mar)ets' (y #e%tember 200+ the crisis had worsened as stoc) mar)ets around the globe crashed and became highly volatile' Consumer confdence hit roc) bottom as everyone tightened their belts in !ear o! what could lie ahead' The sub-prime crisis and housing bubble The housing mar)et in the "nited #tates su,ered greatly as many home owners who had ta)en out sub$%rime loans !ound they were unable to meet their mortgage re%ayments' -s the value o! homes %lummeted the borrowers !ound themselves with negative e&uity' .ith a large number o! borrowers de!aulting on loans ban)s were !aced with a situation where the re%ossessed house and land was worth less on today/s mar)et than the ban) had loaned out originally' The ban)s had a li&uidity crisis on their hands and giving and obtaining loans became increasingly di0cult as the !allout !rom the sub$%rime lending bubble burst' This is commonly re!erred to as the credit crunch' -lthough the housing colla%se in the "nited #tates is commonly re!erred to as the trigger !or the global fnancial crisis some e1%erts who have e1amined the events over the %ast !ew years and indeed even %oliticians in the "nited #tates may believe that the fnancial system was needed better regulation to discourage unscru%ulous lending' The global financial crisis enters a new phase The colla%se o! 2ehman (rothers on #e%tember 34 200+ mar)ed the beginning o! a new %hase in the global fnancial crisis' Governments around the world struggled to rescue giant fnancial institutions as the !allout !rom the housing and stoc) mar)et colla%se worsened' 5any fnancial institutions continued to !ace serious li&uidity issues' The -ustralian government announced the frst o! it/s stimulus %ac)ages aimed to *um%$start the slowing economy' The "'#' government %ro%osed a 6700 billion rescue %lan which subse&uently !ailed to %ass because some members o! "# Congress ob*ected to the use o! such a massive amount o! ta1%ayer money being s%ent to bail out .all #treet investment ban)ers who some %eo%le may have believed could be one o! the causes o! the global fnancial crisis' (y #e%tember and 7ctober o! 200+ %eo%le began investing heavily in gold bonds and "# dollar or 8uro currency as it was seen as a sa!er alternative to the ailing housing or stoc) mar)et' 9n January o! 200: "# ;resident 7bama %ro%osed !ederal s%ending o! around 63 trillion in an attem%t to im%rove the state o! the fnancial crisis' Political instability related to the economic crisis 7n February 2< 200: an 8conomic 9ntelligence (riefng was added to the daily intelligence briefngs %re%ared !or the ;resident o! the "nited #tates' This addition re=ects the assessment o! "'#' intelligence agencies that the global fnancial crisis %resents a serious threat to international stability' Business Week stated in 5arch 200: that global %olitical instability is rising !ast due to the global fnancial crisis and is creating new challenges that need managing' The -ssociated ;ress re%orted in 5arch 200: that> "nited #tates ?@irector o! Aational 9ntelligence @ennis (lair has said the economic wea)ness could lead to %olitical instability in many develo%ing nations'? 8ven some develo%ed countries are seeing %olitical instability' A;B re%orts that @avid Gordon a !ormer intelligence o0cer who now leads research at the 8urasia Grou% said> ?5any i! not most o! the big countries out there have room to accommodate economic downturns without having large$scale %olitical instability i! weCre in a recession o! normal length' 9! youCre in a much longer$run downturn then all bets are o,'? Globally mass %rotest movements have arisen in many countries as a res%onse to the economic crisis' -dditionally in some countries riots and even o%en revolts have occurred in relation to the economic crisis' 9n January 200: the government leaders o! 9celand were !orced to call elections two years early a!ter the %eo%le o! 9celand staged mass %rotests and clashed with the %olice due to the governmentCs handling o! the economy' Dundreds o! thousands %rotested in France against ;resident #ar)oEyCs economic %olicies' ;rom%ted by the fnancial crisis in 2atvia the o%%osition and trade unions there organiEed a rally against the cabinet o! %remier 9vars Godmanis' The rally gathered some 30F20 thousand %eo%le' 9n the evening the rally turned into a Biot' The crowd moved to the building o! the %arliament and attem%ted to !orce their way into it but were re%elled by the stateCs %olice' 9n late February many Gree)s too) %art in a massive general stri)e because o! the economic situation and they shut down schools air%orts and many other services in Greece' ;olice and %rotesters clashed in 2ithuania where %eo%le %rotesting the economic conditions were shot with rubber bullets' 9n addition to various levels o! unrest in 8uro%e -sian countries have also seen various degrees o! %rotest' Communists and others rallied in 5oscow to %rotest the Bussian governmentCs economic %lans' ;rotests have also occurred in China as demands !rom the west !or e1%orts have been dramatically reduced and unem%loyment has increased' (eyond these initial %rotests the %rotest movement has grown and continued in 2033' 9n late 2033 the 7ccu%y .all #treet %rotest too) %lace in the "nited #tates s%awning several o,shoots that came to be )nown as the 7ccu%y movement' 9n 2032 the economic di0culties in #%ain have caused su%%ort !or secession movements to increase' 9n Catalonia su%%ort !or the secession movement e1ceeded G0H u% !rom 2GH in 2030' 7n #e%tember 33 a %ro$ inde%endence march which in the %ast has never drawn more than G0000 %eo%le %ulled in a crowd estimated by city %olice at 3'G million