Why did the stock market crash in 2008?

Why did the stock market crash in 2008?

  • 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.

community wiki at wiki.answers.com Visit the source

Was this solution helpful to you?

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.