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The biggest bubble in the modern U.S. history has started to pop. The average U.S. housing market has tumbled for more than 20% since its peak in 2006. In some areas, the declines in prices have exceeded 50%. The housing bubble has sink not only the financial industry, but the entire economy. In fact, the whole global economy is shattered. Many has attributed the housing bubble to the long-time federal reserve chairman, Alan Greenspan, who had kept the interest rates so low for so long. The low interest rates had inflated paper wealth - everything from houses, stocks, credits, and etc.

Thinking how to explain all this to your kids? Read my post "How to Tell Your Kids about Financial Crisis."