What is the Global Financial Crisis?
Aug 06, аи Yahoo Answers is shutting down on May 4th, (Eastern Time) and beginning April 20th, (Eastern Time) the Yahoo Answers website will be in read-only mode. What caused the financial crisis? Answer Save. 13 Answers. Relevance. Socialist Feminist. Lv 7. 9 years ago. Global financial crisis caused market uncertainty. Jan 07, аи It is caused by the runaway positive feedback loop in the world economy grow economic size unlimitedly despite the fact that the resources are limited. System destruction will be the necessary result of it. The financial crisis is an especially accelerated version of this runaway positive feedback loop in the financial system.
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The reasons are easy to understand IF you knew what was happening in the housing and bond market in THAT led to a crash in the bond market for bonds backed by mortgages or loans such as credit card debt. If it had stayed there then yes they would have been a crisis, but a 22008 minor one - IT was the fact that millions of what were actually "bad" loans had been bundled together to create bonds that turned a crisis into worldwide financial armagedon. And it was only the result of the actions of finnacial governments that prevented a total collapse of the financial system i.
But if you DONT then explaining it would take far too long cos it would have to be explained in simple terms for you to understand.
If you really want to know then read the book "the big short" or watch the film of the same name. The crash was caused by U. Senators, U. Representatives, banks, real estate brokers and appraisers who deliberately conspired to defraud the FDIC. How big paint chip to match color one of these dirty bastards spent one day in prison. All of finajcial kept the hundreds of millions they stole.
Both Republicans and Democrats. Rhe of them even publicly admitted all the dirty tricks they pulled in filmed interviews which still exist. Look up the story of CDOs on line.
That's Collateralized Debt Obligations. They created fake mortgages for dead people, drunks and druggies off the street, cartoon characters, even dogs. A realtor in LA even yagoo in all the old folks in retirement homes and had them what caused the 2008 financial crisis yahoo answers off for homes said to be worth millions.
Appraisers helped by assigning huge value to property that either did not exist or was nothing more than a junk pile. Then they sold off all the mortgages and kept the money.
It is still possible to publish all their names and list the crimes they committed. Don't hold your breath because the people in Washington today are just as dirty and just as dishonest. It was the banks themselves that lowered their lending standards and issued a lot of bad loans.
All those bad loans eventually came back to haunt the banks once the housing bubble was over. When banks started writing huge mortgages to people that couldn't afford them, I sold all my bank stocks, since this just didn't make any sense to me and I knew Judgement Day would be coming.
And as far as I am concerned, if I could figure it out, those bank executives that didn't or couldn't, all belong in jail. The crisis started before the wgat crashed.
The price of housing already went down, before the stock market crash. The stock market did not crash until after the price of housing had already gone down. No, it started because the Democrats wanted fair housing so the Republicans retailiated by creating Predatory Lending. Then the rest. And for the record, Obama took office January 20, and saved the economy from its freefall.
Answer Save. Who Lv 7. Nope the crash actually started in - ir only came to a crisis in The reasons are easy to understand IF you knew what was happening in the housing and bond market in the trigger was that people could not pay their mortgages cos they had overborrowed and that started to happen in Anonymous Lv 7.
StephenWeinstein Lv 7. What did most freed slaves do after the civil war Ms Sunshine Lv 6.
It began with the subprime mortgage crisis. Still have questions? Get answers by asking now.
Apr 10, аи The signs of peril have naturally raised questions about how similar the current situation is to the financial crisis, the worst economic downturn since the Great funlovestory.com: Megan Henney. Jan 17, аи NOTE - it WASNT the mortgage defaults themselves that caused the crisis. If it had stayed there then yes they would have been a crisis, but a relatively minor one - IT was the fact that millions of what were actually "bad" loans had been bundled together to create bonds that turned a crisis into worldwide financial armagedon. Sep 19, аи The political equipment is too dysfunctional to briskly attain for a answer which will enable policymakers to address the topic matters. as an social gathering, the U. S. authorities may have prolonged significant help to households that had quite some personal loan debt; in the range of mark downs in the helpful volume they owed; yet this.
There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page. Banks loaned money to everyone without regard to their ability to repay the loan. Suddenly all these 'sub prime' mortgages defaulted and the real estate market was saturated with foreclosed homes and businesses.
Banks stopped loaning money and home and car sales crashed. People lost their jobs and big wall Street companies were about to go bankrupt. It all happen pretty fast. Taxpayers footed the bill, of course, and Obama took all the credit for basically doing nothing. The financially illiterate got into debt over their heads and in ways they did not understand. Banks wrote loans to people who were clearly unable to repay. The banks then sold those bad loans to Fannie Mae and Freddie Mac which made them the tax payers' problem.
What happened to wall street during that time? Failing poor credit ratings and government not paying back? Answer Save. Michelle Obama's Hair Gel Lv 5. Still have questions? Get answers by asking now.