Why did the stock market crash in 2008?
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Answer:
The whole "growth" of the economy for many years had been based on phony loans given out to increase home ownership. These loans were given to people who couldn't afford a house (so the end result was already predetermined). People used this "fake" wealth to improve their houses, buy things, and bid up stocks for many years. When credit finally ran out the system collapsed and stocks adjusted to the fact that the inflated values were not real.
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