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What caused the stock market crisis if 2007?

The 2007 stock market crisis was primarily triggered by the bursting of the housing bubble, which had been fueled by subprime mortgage lending and the proliferation of high-risk financial products. As home prices began to decline and mortgage defaults surged, financial institutions faced severe losses, leading to a loss of confidence in the banking system. This culminated in the collapse of major financial firms, widespread credit market freeze, and ultimately a global recession. The crisis revealed significant weaknesses in regulatory oversight and risk management practices within the financial industry.


What happens after a stock market bubble?

After a stock market bubble, prices often plummet as investor sentiment shifts from excessive optimism to fear and panic. This leads to a market correction or crash, where many stocks lose significant value, resulting in substantial financial losses for investors. The aftermath can also trigger economic downturns, increased volatility, and tighter regulations as authorities seek to prevent future bubbles. Recovery may take years, depending on the severity of the crash and underlying economic conditions.


What happens when banks are too lenient in loaning money to sonsumers and businesses?

When banks are too lenient in loaning money, it can lead to an increase in debt levels among consumers and businesses, which may result in higher default rates. This can create a credit bubble, where asset prices rise unsustainably due to easy access to capital. Ultimately, if borrowers are unable to repay their loans, it can trigger a financial crisis, leading to bank failures and broader economic instability. Additionally, this leniency may encourage irresponsible financial behavior, further exacerbating the risks in the financial system.


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


What is a period of wild speculation in which a stock is inflated far past its real value?

An economic bubble is a situation in which asset prices are much higher than the underlying fundamentals can reasonably justify.

Related Questions

What actors and actresses appeared in Bursting the Bubble - 2013?

The cast of Bursting the Bubble - 2013 includes: Kiri Nakamura


How does water pass through a bubble without bursting?

Water cannot pass through bubble without bursting .


What are the ratings and certificates for 1600 Penn - 2012 Bursting the Bubble 1-12?

1600 Penn - 2012 Bursting the Bubble 1-12 is rated/received certificates of: USA:TV-PG


What are the negative effects of the dot com bubble bursting?

physical damage


What is the longest time a bubble didn't pop?

The longest recorded time a soap bubble didn't pop is about 12 months. This was in a controlled experiment with ideal conditions to prevent the bubble from bursting.


What is a catchy science fair project name for making bubbles?

"Bursting with Science: The Bubble Experiment"


What is the function of choresterol in a membrane?

It increases the rigidity and stability of the membrane to prevent it from bursting like a soap bubble.


Is jasmine villegas gay?

of course she is her facebook says in a relationship with ashely tisdale sorry for bursting ur bubble


Are there expressions with the word bubble?

Yes, expressions like "bubble up" meaning to rise to the surface, "living in a bubble" suggesting someone is isolated from reality, and "bursting the bubble" signifying a sudden end to a period of optimism or false hope all use the word "bubble."


Why do bubbles pop when touched by something hot?

Bubbles pop when touched by something hot because the heat causes the water inside the bubble to evaporate rapidly, weakening the surface tension of the bubble. This leads to the bubble bursting and the water vaporizing into the air.


What is 7 over 8 multiplied by 15 equal?

852 635 635 they r all wrong im bursting ur bubble


In the latter half of the 1980s japan experoence a period of financial success that came to be known as the?

bubble