Solved
0 views
What was the primary cause of the 2008 global financial crisis?
How did the collapse of the American housing market almost destroy the entire international banking system in a matter of weeks?
M
MoneySmart
asked 2d ago · 10 rep
1 Answer(s)
0
Banks aggressively issued high-risk 'subprime' mortgages to unqualified buyers. They then packaged these bad loans into complex securities and sold them globally as 'safe' investments. When the housing bubble burst and millions defaulted, these securities became completely worthless, instantly bankrupting major global financial institutions.
E
EconProf
answered 2d ago