A significant amount of research has already been made about the financial crisis. But a midterm primer is nevertheless necessary; it is critical to assess the nature of the crises to ensure that the proper lessons are learned. This article aims to present a history on the causes of the financial crisis that first emerged in the U.S. in 2007. Then it will analyze the roots of the current state of the economic crisis in Europe and the U.S. It will also assess the effects of the crises on the European and American economies. Consequently, a range of topics are discussed in the article, some of which have received deeper treatment elsewhere in economic literature, but have not been pieced together to provide a coherent past and present picture of the situation. The article concludes briefly on how this story relates to today’s economic environment and the next steps that need to be taken going forward.