Situation: The financial crisis of 2008 was notoriously one of the worse recessions we have had since the Great Depression of 1929, you are to research this crisis and answer the following questions in a detailed response. 1. What caused the financial crisis in the first place and what steps led to this dramatic result? (A minimum of 6 steps/indicators must be described for full credit). Describe the concept of the CDO and derivative. 2. What happened to the banking sector of our economy and what major banks were involved in the crisis in danger of default? Explain multiple banks and WHY they had financial trouble. (Minimum 3 separate bank and their financial troubles must be described in detail for full credit.) 3. As a result of the financial crisis after 2008, was it simpler or more difficult to get a loan and WHY? How does equity work under normal economic circumstances? How was equity affected as a result of the crisis? What did this do to home valuations? 4. What happened to Lehman Brothers and what was the result? (Describe in detail at minimum 5 events that happened to Lehman Brothers at the time or prior to the crash for full credit) 5. What happened to interest rates post crisis and describe the concept of subprime lending. Why were banks giving ARM mortgages and not fixed rate?