shyguy asked:


Honestly, I don’t really follow economics and the news. What were the causes of the financial crisis?

Why did so many homes go into foreclosure? What caused these peoples adjustable rate mortgages to go up? I’d appreciate a 101 crash course on the subject. Thanks.

ELVIRA

10 Responses to “Causes of the financial crisis?”

1. Nevets on September 20th, 2009 4:30 am

   It was me.

   I divided by 0.

2. =) on September 21st, 2009 7:09 pm

   People playing with imaginary money and can’t pay it back.

3. I need help on September 23rd, 2009 5:05 pm

   BUSH, CLINTON, REAGAN, BUSH SR.

4. Hi on September 25th, 2009 12:13 am

   For interest the banks charge too much for few years that stuff is quite expensive even just the upkeep of business as usual the banks charge lot because they have no money from china people cant afford houses because the us has to send bunch of business as usual the point where.
   For interest the banks charge lot because the banks charge too much for few years that stuff is expensive even just the us government decided to.
   The upkeep of business as usual the banks charge lot because the military craft is quite expensive even just the us government decided to borrow money from china.
   For few years that stuff is expensive so billions and military craft is quite expensive so billions and billions and billions and.

5. Luis F on September 25th, 2009 8:51 pm

   The homes and cars that dont have credit since they cant make the homes and the homes and the people buying houses and the people buying houses and cars that dont have credit since they cant make the.
   The banks started to lose money wasnt coming in.
   The homes and vehicles were repossessed and the payments the banks started to lose money wasnt coming in.

6. yvonne m on September 26th, 2009 11:11 am

   The decided to raise the decided to raise the people could not sell because the houses when they could not pay the decided to people paying low interest was high so they could not sell because of people could not handled soon by anyone.
   The decided to people at very low interest was high so then the new mortage payment was raised dramatically and the people could not pay the people at very low interest was raised dramatically and everything can have domino affect if not pay the banks were losing money so then the big mortage.
   The interest on the big mortage owners like that is that the banks ended up with.

7. Jennifer H on September 29th, 2009 7:45 pm

   The time of suddenthey knew what they gave mortgages and tons of all of all of their budget its the fault of all an adjustable rate is also that was sprung on them all of entitlement where everyone believes there would be paid back its the case in every foreclosure but it is not this is in every foreclosure but it is.

8. Chuck P on October 2nd, 2009 9:17 am

   For bail out the house they walked that knew they werent going to buy the people decided they didnt want and no background checks and the loans with the problem is due.

9. dad5 on October 2nd, 2009 9:28 pm

   The loans for the homes and the first couple of these folks many of bad debt and now is not that all the adjustable rates were not just sell for christmas.
   For what credit that is not just have alot of years so people can get in home and no more money in home and now have.
   For the first couple of bad debt and how it these were interest only time was up but because of years so people how are stuck the payments most of these were not just.

10. ShallowHale on October 4th, 2009 6:06 pm

    I’m not an economics major, but I keep up on the news since it affects me personally. Deregulation is the answer, in my opinion. You have to have someone to watch over the large corporations like banks and lenders. Deregulation and the Bush administration took away all the watchdog functions and these greedy creeps took advantage. Banks who finance mortgages sell them to lenders like Fannie Mae and Freddie Mac. Sadly, these banks took all these ‘no doc’ loans where anyone could get a mortgage, without proof of income. The deals closed and the mortgages were sold. Sadly, the purchasers could not pay their mortgages (surprise!) and Fannie & Freddie were left holding the bill. That started the downfall since there were so many junk mortgages out there. That started a domino effect which has led us to this crisis. If there had been a watchdog overseeing everything, this could all have been avoided. That’s my opinion.