Question

Why did the global economic crisis occur?

Answer 1

@destiny.duh @escamer @Hayhayz @malcolmmcswain @Willie579 @Watermelon_Talk @sam141101 @12G

Answer 2

?

Answer 3

Idk. :/

Answer 4

idek

Answer 5

the stock market maybe?

Answer 6

I have to explain it in like 3 sentences lol

Answer 7

*paragraphs lol not sentenses

Answer 8

I assume you're talking about the 2008 subprime mortgage crisis. What basically happened is people sold mortgages to people with very little to no collateral who couldn't normally afford them at low rates artificially inflating the housing market. This propped up the houses more and the banks lent out money they didn't have. When the people couldn't pay any more the housing market collapsed, the banks lost significant sums of money, and the rest of the economy nearly collapsed.

Answer 9

The global financial crisis (GFC) or global economic crisis is commonly believed to have begun in July 2007 with the credit crunch, when a loss of confidence by US investors in the value of sub-prime mortgages caused a liquidity crisis. This, in turn, resulted in the US Federal Bank injecting a large amount of capital into financial markets. By September 2008, the crisis had worsened as stock markets around the globe crashed and became highly volatile. Consumer confidence hit rock bottom as everyone tightened their belts in fear of what could lie ahead.