Asked in
2008 Economic Crisis

Explain the three basic economic problems?


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June 19, 2011 3:13AM

People getting into debts they have know way to get out of and getting loans for houses there is no way they could afford.

Downward cycle of a booming economy, a real estate bubble where prices just cannot go up anymore and then sink down for various reasons.

To much debt and spending so the dollar is losing its value and is being inflated.