Money Saving Tips

Tuesday, May 18, 2010

Economic Drop in 2008

The "recession" that began in 2008 started because investors lost faith in mortgage-backed securities, so there was a reduction the capacity of loans by banks. This most likely made people lose their jobs, so they couldn't pay for investments in mortgage-backed securities, making banks able to loan out less, and the cycle will continue for this and many other factors unless something is done. I am mostly sure something has been done, because that was 2 years ago, and our economy is back on track now.

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