In 2007 the stock market plunged, insurance companies went bankrupt, banks closeddown and people lost their jobs. The financial crisis or the great recession as often referred toin the US has been described as,
the worst economic crisis since the
(Ely,2009, p. 93). In hindsight however the warning signs were there. Raghuram Rajan presented apaper to some of the most powerful people in finance predicting that current marketconditions were increasing the risks in investment trading and a crash was possible (Rajan,2006), nonetheless no-one paid attention.The causes and consequences of the financial crisis have been well documented in themedia but it is far more complex than the general public realises, information has been selectedand manipulated to appease public outrage. This paper researches the causes of the 2007 USfinancial crisis through to the consequences that still affect the economy today. This will beaccomplished by the study of many academic sources as well as mass media publications fromnewspapers to interviews. The academic sources enable an in-depth understanding whilst massmedia publications will give insight into the information the average US citizen was exposed to.