Exploring 2008 Financial Crisis of America

What was the 2008 financial Crisis? The financial crisis was caused due to deregulation in the financial industry. Mortgage-backed securities allowed banks to invest customer’s money in derivate. These derivatives were created from subprime mortgages (highly risky) and the demands for homes skyrocketed. As time passed, the sub-prime borrowers started to default, and the houses were in foreclosure. The supply for houses increased whereas the demand was very low. In 2008, the housing prices started to freefall and so began the dominos effect. The market became skittish, consumers became timid in their spending, large investment companies went bankrupt, hundreds