Why the drop in housing prices caused a major financial crisis in 2008, and how the 2008 financial crisis transformed into a major economic crisis and crashed the economy.

Q1 Based on your reading of Blanchard’s Chapter 1, using the relevant graphs and data in the Chapter and Lecture notes, explain
a) why the drop in housing prices caused a major financial crisis in 2008, and
b) how the 2008 financial crisis transformed into a major economic crisis and
crashed the economy.
Q2Using the relevant graphs and data in Chapter 1 and Lecture notes,
explain why and how the 2008 crisis in the U.S affected the world economy and turned
into a world economic crisis.