Using empirical studies conducted by previous and current researches, We have realised that the current crisis in the USA has taken a different tune in terms of causes and this has precipitated the inability of the legislative responses of the 1980s to prevent the current crisis. While the 1980s were basically caused by boom and bust in the oil, agricultural and real estate industry coupled with some sectoral recessions, the current crisis is attributed majorly to the subprime mortgage. The subprime mortgage was fuelled by the high deregulation in the financial market giving way to securitisation and the inundation of the market with highly obnoxious and complex derivatives. A conclusion is arrived here by calling upon all authorities in charged to use history as a guide to chart a smooth path for the future and also to keep up to date with regulations since the financial market is dynamic and moves together with technology. This document will be very relevant for Financial Institutions and Students pursuing BSc, MSc/MBA or PhD in Finance and Accounting or Banking.