The world economies are passing through very difficult time. It is a worst economic crisis as compared with the great depression of 1930’s., The developed world is going to an inevitable recession, the global economy is going to experience a slow down,the credit market is in a big crisis and there will be a massive credit contraction in developed countries of the world and sub emerging world. Stock market all over the world crashed without exception from developed countries to emerging markets. Currency market has been experiencing a turbulent time. Though it started to show its effect only the middle of 2008, it is expected that the intensity and effect to the grass root level of economy can be experienced during march 2009.We had a difficult time and in this global financial turmoil, the government even in the wealthiest nation had to come up with rescue packages to bailout their financial system. What will be the reason for al these?. This paper is trying to have a quick look into i...