The Global Financial Crisis has become one of the worst scenario in history that caused considerable slowdown in most developed countries such as U.S (United States), U.K (United Kingdom), and Europe that occur in 2006. Most developed countries still got the hardest time to recovered their Financial in their country because of that accident. U.S is being considered as one of the center economic of the world, after Financial Crisis that already happen in the past U.S still can’t go back to their glory past. The objective of this research is to evaluate the impact of Global Financial Crisis to other countries and give information how to avoid The Global Financial Crisis in the future by correlated between S&P 500 index, The 30-year US Treasury Bond Price, CRB index, USDX, and HMI in 2006-2011. Also, in this study, the researcher will give some information about what makes the Global Financial Crisis occur in the first place, in order to prevent the same scenario in the future. The researcher will use Partial Correlation as statistical tools and will implement by using SPSS 21. The research data that will be use is monthly data from January 2006 until December 2011 for each variable. The result from this research will prove each variable have correlation with one another and give effect to each other.

I. ABSTRACT I
II. ACKNOWLEDGMENT II
III. TABLE OF CONTENTS III
IV. LIST OF TABLES V
V. LIST OF FIGURES VII
1. INTRODUCTION 1
1.1 Background of The Study 1
1.2 Events Which Happened in Global Financial Crisis 2
1.2.1 The Housing Market Crash (Housing Bubble) 2
1.2.2 Federal Takeover of Fannie Mae and Freddie Mac 3
1.2.3 The Collapse of Lehman Brothers 6
1.3 Problem Identification 7
1.4 Statement of Problem 9
1.5 Research Objectives 10
1.6 The Aims of Study 10
1.7 Scope and Limitations of The Study 10
1.8 Hypothesis 11
2. LITERATURE REVIEW 13
2.1 Theory of Global Financial Crisis 13
2.1.1 Banking Crisis and Panics 14
2.1.2 Credit Frictions and Market Freezes 14
2.1.3 Currency Crises 15
2.2 Theory of Sub-Prime Mortgage Lending 16
2.3 Theory of Intermarket Analysis 17
2.4 Theory of Housing Market 19
3. RESEARCH METHODOLOGY 21
3.1 Research Methods 21
3.2 Research Framework 21
3.3 Sampling Design 22
3.3.1 Statistical Tools 22
3.3.2 Population and Sample 23
3.3.3 Research Variables 23
3.4 Testing The Hypothesis 24
3.4.1 Partial Correlation 24
4. ANALYSIS OF DATA AND INTERPRETATION OF RESULTS 26
4.1 Research Process and Result 26
4.2 Data Analysis and Result Interpretation 43
5. CONCLUSION AND RECOMMENDATIONS 45
5.1 Conclusion 45
5.2 Recommendations 45
REFERENCES 46
APPENDICES 48

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