The world economies especially the USA economy have recently experienced the worst financial crisis since the great depression. This crisis is a result of highly deregulated financial system and rapid financial innovations. The financial market of USA has collapsed, the housing market has been destroyed, credit market has dried up and the adverse effects on USA real economy are very clear. The future of USA economy looks very uncertain; in this study we have analyzed the causes and after effects of financial crisis, we have studied the previous trends of some key variables (financial and economics) and predicted the future of USA economy. The study also provides suggestions for the revival of the USA economy.