answersLogoWhite

0

The current US Subprime economic crisis caused the Stock Market crash in 2008

Due to lack of liquidy people started selling off their stocks to make cash. This caused a massive selling of stocks which in turn made the market crash

User Avatar

Wiki User

16y ago

What else can I help you with?

Continue Learning about Economics

What is the The US Real estate market crash?

It is usually referenced as the time period beginning mid 2008 to the end of 2009. Although, some still make the case it is still on-going.


How long did it take the stock market to recover after the 2008 crash?

The stock market began to recover gradually after the 2008 financial crisis, with significant gains starting in March 2009. It took roughly four to five years for major indices, like the S&P 500, to return to their pre-crisis highs, which were reached in 2007. By 2013, the market had fully recovered, marking a long bull market that continued for several years thereafter.


How is the economy affecting the availability of home mortgages?

Due to the market crash in the late 2008's, banks closed up the gap for easy mortgage availability. You must have a good credit score and be approved by the bank to receive the loan.


Is today's recession caused by AD shock or AS shock?

The Recession of 2008 was caused by an aggregate demand (AD) shock.


What were some of the weaknesses in the American economy in 2008 which have been labeled a recession year?

The idea that in 2008 or other years near that date consisted to be a "Great Depression" is false. As an example, the unemployment rate in the depression of the 1930's was 25% of the workplace. Also, a stock market crash was demonstrated on several occasions in the late twenties as an example. No such fall in prices to the extent of that economically recognized "crash" happened in 2008 or years near that year.Some of the weaknesses in the United States economy in the midst of the fall in stock prices were low quarterly economic growth numbers, an unstable employment level, low housing values and unconventional asset purchases by the Federal Reserve Bank of NY.

Related Questions

When did the depression start?

It is generally believed to have started with the stock market crash of October 1929. It was caused chiefly by inflation.


How much was lost in stock market crash of 2008?

10 trillion


Why stock market crash in 2008?

Because Chuck Norris is cool.


What was the date on the stock market crash?

Sept 21, 2008


What was the single reason that caused the stock market to crash?

The arbitrary home loans allowed against inadequate security is the prime reason for the downfall of U.S. stock market in 2008.The corrupt officials siphoned off money and made their fortune,allowing the U.S. economy to a total disarray.


Whne the stock market crashed stocks?

hi reasons for the market to crash include; 1in 2008 the lehman faulire destroyed investor confidence dody99


How did the 2008 stock market crash occur?

The stock market crashed when the US gov't over-printed currency, thus starting inflation. From there, money was worth less and less which caused the prices on everything, including oil, to rise. as money was worth less, businesses began to close and banks had to be bailed out of bankruptcy with OUR taxpayer's billions. this caused stocks in businesses or corporations to plunge. it sounds like the end of the world, but really, it is not.


How did Sallie Mae survive the stock market crash of 2008?

Sallie Mae, a student loan association, was able to survive the stock market crash by privatizing their company. By privatizing their company stock holders were not able to get in and grab a share making it safer and more effective in not losing their profits.


What are the release dates for Deliver Me - 2008 Crash Course?

Deliver Me - 2008 Crash Course was released on: USA: 8 April 2008


When did Crash Commando happen?

Crash Commando happened in 2008.


What are the ratings and certificates for Crash - 2008?

Crash - 2008 is rated/received certificates of: Australia:MA Netherlands:16


What are the release dates for Crash Course with Shaun White - 2008?

Crash Course with Shaun White - 2008 was released on: USA:4 August 2008 (internet)