The global financial crisis beginning from 2007 and peaking in 2008-2009 is considered by many economists to be the worst crisis since the Great Depression of the early 1930s. Rajan (2010) and Kumhof and Rancière (2011) propose that rising inequality led to a credit boom and eventually to a financial crisis in the U.S. in the first decade of the 21st century as it did in the 1920s. Bordo and Meissner (2011), using data from 14 advanced countries between 1920 and 2000, present that there is no significant evidence to prove the general relationship between financial crises to rising inequality. In Bordo and Meissner’s (2011) thesis, low interest rates and economic expansions are the only two robust determinants of credit booms. I use the mostly similar dataset as Bordo and Meissner (2011), while with found no evidence to support their conclusion using a more elaborate econometric analysis which would support the heterogeneity of the countries. I also take into account the nexus between effect of deindustrialization and the inequality. In my thesis, I find significant evidence to prove this nexus which means that income inequality, over-deindustrialization, and over- financialization would soon cause financial crisis.