was a major cause of the US recession that began in 2008? defaults on mortgages for homes consumers not buying new homes damage from Hurricane Katrina a rise in the American stock market?

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2 August, 00:07

was a major cause of the US recession that began in 2008? defaults on mortgages for homes consumers not buying new homes damage from Hurricane Katrina a rise in the American stock market?

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Brett Yates · Answer 1

a

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Anton Vazquez · Answer 2

The major cause for the US Great Recession in 2008 was the subprime mortgage crisis. These kinds of mortgages were meant to grant home loans to borrowers with poor credit in high-interested rates, which led to a great amount of people who couldn't afford houses before to a time where they could be able to buy them as a means of investment. Unfortunately, it became hard for them to pay them back and besides that, the housing market began to fail, causing properties to lose value and thus it made a terrible impact both on the home owners and the banks that lent the money.