Answer to Question #305732 in Finance for Musenga

Question

Identify the main causes of the financial crisis of 2008? identify the main risks that contributed to the crisis

Answer 1

The main causes of the financial crisis of 2008 was the major recession that was never witnessed in history and was named one of the worst economic decline of the period that lasted for almost two years. There are factors that fueled the crisis like the massive collapse of the housing market which directly translated to the low interest rates, easy credit, insufficient regulations and the toxic subprime mortgages that led to the massive economic crisis.