Abstract

Until recently the capitalist economy and its banks, insurance companies and stock exchanges have been the key to success as this system acquired great informational and intellectual equipment that enabled it to enter the hearts and thought of many people and thinkers, and decision makers in many countries. This made it a resort and a shelter for development and change seekers. However, the recent financial crisis has shown clearly that every system carries within it the seeds of its own destruction, as it is based on pillaging the riches of the peoples, usury, antitrust, and fraud.

The financial crisis emerged with the recovery of the real estate market in America, where financial institutions *banks* provided usurous loans with a blind eye to the guarantees, and therefore real estate trade flourished, resulting in higher prices. This rise led to the dramatic increase in borrowing by house mortgage, whose price increased at the purchase of houses and, as a result, real estate became mortgaged by the banks, and the unreal economy in America grew due to the increase in consumption.
And when borrowers could not repay their debts, the banks and real estate companies sold debt securities in the form of bonds and turned mortgage into securities and sold them.
With the aggravation of the crisis, many investors resorted to the insurance companies, which took the opportunity to maximize their profit, and when the people with low-income were unable to pay, as a result of successive increases of usury and the accumulated premiums, companies and banks were forced to sell the homes in dispute but the refused to leave , leading to falling prices of real estate, which also led to evasion by companies and banks from covering loans and when investors demanded their money from the insurance companies, the latter too did not have money to meet these demands.
Such a situation led to the collapse and bankruptcy of many banks and insurance companies which had negative effects on many nations around the world.