What was the main cause of the Great Recession in the late 2000s? 🔊
The primary cause of the Great Recession, which unfolded in the late 2000s, was a combination of a housing market crash and subprime mortgage crisis. The recession was triggered by the burst of the housing bubble in the United States, characterized by inflated property values and widespread speculative investments. Financial institutions had issued numerous risky loans to borrowers with poor credit histories, leading to high default rates. This crisis was compounded by the interconnectedness of global financial markets, as mortgage-backed securities and other financial products tied to U.S. real estate losses, resulting in a severe economic downturn affecting employment, lending, and overall economic stability.
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