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The current recession, also known as the Great Recession of 2007, began in late 2007-early 2008 and was the result of the burst of the housing bubble. A bubble means the inflation of value of goods or services; the burst of the bubble meant prices collapsed suddenly. The main cause of the recession was the over-investment and spreading of risk through sub-prime mortgages. These mortgages were dangerous, raised prices, and their inherent risk was combined into subsequent derivatives which were difficult to government and credit agencies to rate. Some other causes include banking malpractice, government regulation, and moral hazard.
Revised in more of a "kiddy" way:
Back in 2007, the banks were giving out loans left and right, but were careless to compare the price of the house mortgage to the person's salary and income. These people obviously couldn't afford to pay the monthly mortgage, and since they never put any money into the house, they just ditch their home. Now, imagine like over 1,000 people doing this. The bank becomes corrupted, and it creates chaos we have today. So, you could say our current recession could be blamed on the bank being carefree.
What else can I help you with?
What is a recession start date called?
The date at which a recession starts is called a peak.
What is a recession economy?
A recession is when the economic activity slows and people start losing their jobs and/or companies slow their hiring.
When did recession start?
It starts depending on the school.
What is the start of the contraction phase in a business cycle called?
Similarly, a period of recession occurs at the start of the contraction phase.
Recession is spreading like virus examine the impact of recession on stock market and mutual fund?
recession
What is a recession start date called?
The date at which a recession starts is called a peak.
Did the lehman brothers start the recession?
yes they did
What is a recession economy?
A recession is when the economic activity slows and people start losing their jobs and/or companies slow their hiring.
When did recession start?
It starts depending on the school.
What is the start of the contraction phase in a business cycle called?
Similarly, a period of recession occurs at the start of the contraction phase.
Is it a good idea to Start a business right now?
God, no. World wide recession= Bad time.
Are you in a depression or recession?
The world is in a big recession.
What is the adjective of recession?
The adjective of recession is recessionary.
Will the recession be extreme in 2009?
No. The recession is expected to stabilize during 2009 and is expected to end by the end of 2009. The steps taken by the governments world over would start showing effect and the economies will recover. note: This is only my opinion.
Recession is spreading like virus examine the impact of recession on stock market and mutual fund?
recession
What is global recession?
Global recession is a period of economic slowdown. The Great Depression and Great Recession are two periods in time that experienced global recession.
What are Advantages and disadvantages of recession?
advantages and disadvantages of recession
