![]() The buyers and sellers of CDOs were left high and dry as the CDOs had lost all their value. ![]() It was a loop and there was no way out of it. The burst of the housing bubble of 2008 was a fact. The housing market crash led to the stock market crash not only in the US which spilled over to other countries as well. The financial system of the world had come apart. There was debt all around, investments were worthless and investment banks were clueless. Almost all major economies around the globe entered a recession by the end of 2008. It was a dark time.Įventually, the Fed did step in and rolled out a 700-billion-dollar relief plan. It bailed out several investment banks who got away scot-free. It was the common man, like always who suffered. The collapse of the markets led to immense layoffs and almost 2 million Americans lose their jobs. The bottom line is that the intention behind low-interest rates and even securitizing mortgaging was a good one. But the onset of greed in the banks which led to unchecked lending brought the world to its knees. There is a very fine line in finance between a game-changing move and self-destruction. The bankers crossed that line, and thus led to the greatest financial crisis if the modern era via the housing bubble of 2008.Year-to-date there have been 29,819 single-family home sales in Massachusetts (as of Aug. ![]() ![]() 16, 2022), an 11.8% decrease from the first seven months of 2021. ![]()
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