Subprime mortgage crisis is one of the worst financial crises that the United States has ever faced since the great depression. The crisis has been triggered by an increased mortgage delinquency with foreclosures leaving thousands of Americans living out in the streets. It has also lead to adverse consequences on the banks and the financial markets not only in the United States but all over the world. Although the roots of the crisis could be traced to the closing of the 20th century, the effects became apparent only in 2007 when the crisis peaked exposing the cycles of financial disarray that had grasped the financial industry all over the world. In 2008, the US government had to come up with a $700 billion in order to rescue the financial market and mitigate the mortgage crisis but the effect is yet to be felt. Subprime mortgage crisis is one of the worst financial crises in the United States which if unchecked could leave millions of Americans living out in the cold.