What Caused the Credit Crunch & What is a Recession?
As a novice to this kind of thing, can anyone give me a brief explanation of what caused the credit crunch? How come the banks are all in such a mess? Why could tax payers money be use to "bail the banks out" and what would happen if there is a recession?
Asked By: coco21 - 10/11/2008
Best Answer - Chosen by Asker
It's interesting that you separate the two, a lot of people think that the Credit crunch and the recession are the same thing, but you have correctly identified a difference... More
Answered By: soundman_jaybee - 10/11/2008
Additional Answers (5)
Recession is when you have negative national growth for 2 quarters
Answered By: cheekybear - 10/11/2008
Greed and economic decline. The government need to keep tabs on things.
Answered By: Go4it - 10/11/2008
One of things that contributed was the banks and mortgage companies were pressured by a group called Acorn. They demanded that high risk people/ low income get home loans. If you do a little reading on that it will give you one of the reasons.
Answered By: philinnwfla - 10/11/2008
banks lent money to people who couldnt pay back their loans (too many of them.) so the banks took the houses off these people and have tried to sell them to get their money back but because there are so many houses for sale, no one is buying them. the banks therefore are losing money big time and because they are... More
Answered By: juddys mum - 10/11/2008
Predatory lenders who offered sub prime loans to people who didn't deserve them caused the credit crunch, so banks & creditors are now more likely to be cautious in who they lend money to. There are now more higher requirements than before for people to open lines of credits and borrow loans b/c of it. The banks are... More
Answered By: thatguyoverthere - 10/11/2008
(89) Local Jobs Paying $19-$97 Per Hour- Available Today. Apply Now!
$21/hr Start, Avg Pay $72K/yr Check Our Map of the 1700 Openings.
Fill your tweets with tales of technology. Begin your tale today!
New job opportunities added daily. Search & apply for DC jobs now.
Other Career Questions
What jobs are there in the business field that are night jobs? Places and job titles please. Im have a BA in Business Admin and looking for a night job, already have a morning/day job.
Enumerate these jobs Say, patent application writting. patent application writing. In a company, what jobs are needed to keep confidential?
Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.
Best-Paying Work-from-Home Jobs
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
2013 Engineering Jobs Outlook
Engineers will find job opportunities in select disciplines in 2013, with candidates who are all-around, client-oriented businesspeople in demand.
Best-Paying Jobs by Major
What could you earn with a particular four-year degree? Find out by checking out this list of the top-paying jobs for 20 of the most common majors.
Eight High-Paying, Secure Jobs
Want to earn a good salary and enjoy a measure of job security as well? Check out these well-paying jobs on tap for fast growth in the coming years.