The Market Crash 2008

Events surrounding the subprime financial crisis that has caused two of Dow's two-day major accidents hit the fourth, fifth, and tenth crashes on a single night in Dow history, both of which occurred in 2008. It is difficult to say that the crisis is over, but it is helpful to compare it with other historical stock markets and economic problems: The Great Recession in 1929 (92% loss), the black Monday of 1987 (31%), the recession in 2000 (34%), and the Great Recession of 2007-08 (49% fall). This paper adds new findings to art texts showing that stock market crashes and financial crises have a profound effect on general expectations, moderate uncertainties, and expectations.

The biggest one-day crash in the history of the Dow Jones Industrial Average occurred on September 29, 2008, when the US House of Representatives rejected a $ 700 billion government bailout and Dow lost 777.68 points or 69.8%, losing $ 1.2 trillion in market value. After losing more than 1,000 points the day before, it has been the worst week in stocks since the financial crisis of 2008, making many wonders what will happen to the stock market collapse. Many Americans do not know how close the collapse of the US financial sector was during the most volatile trade on Wall Street in 2008-2009 that lowered the world's largest economy.

Bank overcrowding, combined with the explosion of housing football in the United States, has led to a decline in the number of shares held in U.S. property and has caused significant damage to financial institutions around the world, culminating in the collapse of Lehman Brothers on September 15, 2008, and the next international banking crisis. The real cause of the housing and financial crisis was a private equity loan in an uncontrolled market when the real estate market changed dramatically with the growth of subprime loans in the early 2000s, many of which found their way into dangerous products. The fact that many financial products, banks, and other investors have been exposed to this market has led to a loss of confidence among investors.

The financial crisis caused by the stock market crash in 2008 affected many sectors, leading to massive job losses and the loss of collateral. The impact of the crash has eroded much of America's retirement savings and disrupted the economy long after the stock market regained control. When the housing crisis erupted, it reached banks and financial institutions that were betting on the continued rise in domestic prices.

Key takeover Stock and housing markets collapsed in 2008 due to the explosive growth of the subprime commodity market that began in 1999. The explosion of a housing bottle and the next mortgage crisis have occurred due to high automatic rates due to the closure of mortgaged property, particularly interest rates. In the fall of 2008, large numbers of borrowers failed to repay subprime loans, leading to financial market violence, stock market collapse, and the following global depression.

The financial crisis of 2008 began in the housing market, which has been the cornerstone of American prosperity for generations. Continue to learn how the explosive growth of the subprime lending market, which began in 1999, played a major role in organizing the turmoil that began nine years later when the stock and real estate markets collapsed in 2008. Much of this was government-related - and the lack of adequate government oversight in key areas such as consumer protection, private loan security, banking, and financial markets that have turned the rise in housing into a global financial crisis.

Indeed, Fligstein and his colleagues said it was the failure of committee members to see the link between the housing market, the subprime mortgage market, and the financial instruments used to package the security of assets that led the committee to underestimate the seriousness of the crisis. By focusing on the risks of government support in the housing market, policymakers will better benefit by examining what many experts have identified as the causes of the housing crisis: animal debt and poor financial management. Given the growth of the stock market and its investment vehicles, along with rising consumer debt, it is difficult to argue that the financial crisis of 2008 and the subsequent massive economic growth could have been reduced or avoided if the relevant policies had been applied.

Using annual company profiles from affiliate subprime mortgage lenders, the authors show that with the advent of the general mortgage market in 2003, the financial industry began to integrate subprime loans into subprime loans to continue making profits and finances. In other words, banks were pursuing new lending markets in the form of unusual loans, and they found that lenders were taking out risky loans. The concept is that banks do not care whether they lend to potential borrowers because they do not intend to finance their financial products.

Banks also put in loans that they would not be able to buy and sell to investors in the secondary market. Few American homeowners were able to meet their mortgage obligations, and MBS prices plummeted, forcing financial institutions to collapse. The next government rescue squad was Fannie Mae and Freddie Mac - nicknamed the Federal Home Loan Mortgage Corporation - next.

According to a recent report by the National Commission on the causes of the financial and economic crisis in the United States, the mortgage rate rose sharply between 2001 and 2007 at a faster rate nationwide.