answersLogoWhite

0

The short and simple answer is buyers quit buying.

User Avatar

Wiki User

15y ago

What else can I help you with?

Continue Learning about Economics

Can materialism be called a reason for the financial crisis?

Definitely! That is the only reason in my opinion. We got to greedy and burst the bubble.


What is the difference between a macro burst and a micro burst?

nuguu


How did the recession start?

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 kind of risk is involved when you invest in real estate hoping that the prices will increase so you can sell the property for a profit?

The kind of risk where you can afford to lose some of your investment. Real estate values do not increase now like they did during the "bubble" when prices inflated regularly and some people made a lot of money flipping properties before the market crashed. You need to study the market in your own area.The kind of risk where you can afford to lose some of your investment. Real estate values do not increase now like they did during the "bubble" when prices inflated regularly and some people made a lot of money flipping properties before the market crashed. You need to study the market in your own area.The kind of risk where you can afford to lose some of your investment. Real estate values do not increase now like they did during the "bubble" when prices inflated regularly and some people made a lot of money flipping properties before the market crashed. You need to study the market in your own area.The kind of risk where you can afford to lose some of your investment. Real estate values do not increase now like they did during the "bubble" when prices inflated regularly and some people made a lot of money flipping properties before the market crashed. You need to study the market in your own area.


What is necessary before investment can take place?

Discipline Is Necessary for Investment Success. Investment strategy is essential before having any investment decisions.

Related Questions

When was Burst the Bubble created?

Burst the Bubble was created in 2002.


Investment bubble deck scam or not?

there is an investment on the market to do with manfacturing bubble deck , i am wondering if it is a scam or a real investment


When did the Great Bubble burst?

1929


When did the housing bubble burst?

Greed.


IS Mew on Platinum?

Sorry to burst your bubble, but NO.


Are catgirls real?

Sorry to burst your bubble, but no.


Why would Dublin Property be a good investment to buy?

Properties of all kinds in Dublin are lower in price after the real estate bubble burst a couple of years ago. Purchasing a bargain property and holding on to it for several years can be a great investment.


What is a tsynami?

Hate to burst your bubble, but there is no such thing as a "tsYnami"


Can human levitate?

sorry to burst your bubble, but uh no!!


What is an hypothesis for dry ice?

Hypothesis: I think the fog will affect the bubble and the expect that when all the fog builds up into the bubble the dry ice bubble is going to burst. I think that because when all the fog from the dry ice builds up in to the bubble then it is going to burst.


Why an air bubble in water burst as it emerges on water surface?

An air bubble in water bursts at the surface due to a decrease in surface tension. As the bubble rises, the water surrounding it is dragged along, stretching and thinning the surface layer. When the bubble reaches the surface, this thin layer breaks, causing the bubble to burst.


What does it mean to 'burst your bubble'?

It means to shatter your illusions about something.