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One of the major causes of the recession American experienced in 2007 was due to the issues with mortgages. Banks gave loans to people who could not afford the mortgage on the home. Banks would then sell the loan to another bank. People who could not pay the loans would go into foreclosure. The asset value of the home decreased although the repayment of the debt remained the same.
What else can I help you with?
What is the difference between recession, depression, and inflation?
Recession is a period of economic decline, depression is a severe and prolonged recession, and inflation is the increase in prices of goods and services over time.
Impact of recession on Indian equity market?
which type of Impact on Indian market byt Global recession
What is the difference between depression and recession?
Depression and recession are both economic downturns, but a depression is more severe and longer-lasting than a recession. A depression involves a significant decline in economic activity, high unemployment rates, and widespread hardship, while a recession is a period of economic decline that is less severe and shorter in duration.
Are bonds recession proof investments?
Bonds are not completely recession-proof investments, as their value can be affected by economic downturns. However, they are generally considered safer than stocks during a recession because they provide a fixed income stream and are less volatile.
Does a depression always follow a recession?
No, a depression does not always follow a recession. While a recession is a period of economic decline, a depression is a more severe and prolonged downturn in economic activity. Not all recessions lead to depressions, as various factors can influence the severity and duration of an economic downturn.
How does poverty tie in with recession?
recession causes an increase in poverty
What causes demand for farm products to decrease in the 1980s?
The Countywide Recession
What Other causes of unemployment?
Recession
Causes of recession in Zimbabwe. Link your answer to business cycles?
Recession in Zimbabwe, link your answer to business cycle
What caused the recession in the US in 2001 to be mild?
The suspect lending practices was one of the causes of the recession in the US in 2001.
How does recession effect stock market?
The recession causes stock prices to drop as a whole except a few defensive stocks such as Wal-Mart.
Explain how a decrease in total expenditures affects the nation's economy.?
There might possibly be multiple answers since this guy said recession. If so the most possible answer is " Expansion" if you are givin the choice to do recession or expansion its gonna be expansion. Ive done research and the answer is different depending on the program so this is a question youd have to do some research on
How would a decrease in total expenditures affect the nation's economy?
it causes a recession
What is the Link between the recession and mortgages?
Recession causes people to have less money. This happens due to loss of jobs and hence loss of income. If a person doesn't have income, he/she cant pay the mortgage. Hence recession and mortgages are related.
Which of these factors was not one of the causes of the recession in 1937?
Two justices had retired from the Supreme Court.
What are main causes of recession in Pakistan?
Due to corruption of political leaders and ignorance of people about their rights and duties in nation.These are the major cause of recession in PAKISTAN.............
What causes one million Irish immigrants to arrive?
in 1845 it was because of the famine but no Ada's its because of a recession
