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What Is The Possible Cause Of The 2008 Financial Crisis

1419 Words6 Pages

In 2008, the people had to face the financial crisis with the questions related to the president. In a few months people had acknowledged that the power is absorbed by the light of other major financial institutions and there had been different concerns in this regard. The 2008 financial crisis had been a perfect storm that must be figured out now. Possible Cause of the Crisis in 2008 People want to try to make most of the money for assurance unnecessarily. Unfortunately, demand growth had been an issue and it can be raised from there, the issue to buy things. To the right of the part, billions of dollars had been wasted because of this case. This involved the shares in private companies along with the non-use of a substance without creativity. …show more content…

On its return, the real estate market would come out of the mass of the non-thought of burning. Real estate agents had been the uncertain faith of a value of 100%, instead the current bank loans causes high-risk areas of the demo Reinvestment Act (Otter, & Wetherly, 2008). People had sold the most useful of the exhibition, in order to participate as an investor. These mortgage-backed securities had been set as the work of the mortgage. The insatiable loan to create more demand of small financial funds had been held. On the other hand, this involved the pension funds, and investment …show more content…

Numerous investment firms and numerous banks began to bleed money. It also caused a glut of homes on the market and miserable housing prices slowed the growth of new homes, making thousands of builders and workers in the market. The prices had been miserable and they had caused other complications, such as the value of numerous homes had much less than the mortgage amount and some owners had simply decided to walk instead of paying their mortgages (Cheffins, 2015). The well-drained credit had caused the issues of financial crisis and other approaches. This had caused significant losses for numerous banks tighten their lending terms, but it was too late for numerous of them, the damage had been done already. Numerous financial institutions and banks had merged with other institutions or simply give up. Others had been lucky enough to receive a bailout from the government and they are still functional (Taylor,

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