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BREAKING: Recession News
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REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
The Great Recession, which lasted from December 2007 to June 2009, was one of the worst economic downturns in history. It saw millions of people lose their jobs, businesses crumble, and families suffer. The question on many people's minds is, "who caused the Great Recession?" Many people place the blame solely on the banks and investment firms that got caught up in risky loans and subprime mortgages. While they certainly played a role, the problem was more complex and involved a number of key players. Certainly, lax regulation was a major contributor. Under the Clinton administration, Congress passed laws that encouraged banks to lend money to people who wouldn't have qualified previously. This was known as the Community Reinvestment Act. The goal was to expand access to credit, particularly for low-income and minority communities. However, this also encouraged banks to make loans to individuals who were not creditworthy. At the same time, the Federal Reserve was holding interest rates at low levels, which made it easier for people to borrow money. This created a lending boom that fueled the housing market. Home prices skyrocketed, but the bubble eventually burst, leading to the collapse of the housing market. Wall Street also played a significant role in the Great Recession. Banks and investment firms created complex financial instruments that packaged subprime mortgages into securities that were sold to investors around the world. These securities were rated highly by credit rating agencies, despite being risky. When the housing bubble burst, these securities plummeted in value, causing huge losses for those who had invested in them. This led to the collapse of several large financial institutions, including Lehman Brothers and Bear Stearns. The government also bore some responsibility in causing the Great Recession. As mentioned earlier, the Federal Reserve kept interest rates artificially low for years, which helped fuel the bubble. Additionally, the government-sponsored entities Fannie Mae and Freddie Mac purchased and guaranteed a huge portion of subprime mortgages, which made them more widely available. While many entities contributed to the Great Recession, it's difficult to place blame solely on one group. It was a combination of factors that led to the downturn, and it took all of these groups working together to create the crisis. In conclusion, the Great Recession was caused by a combination of factors, including lax regulation, low interest rates, and risky behavior by banks and investment firms. Rather than pointing fingers, it's important to learn from the mistakes made during this time and work towards preventing a similar crisis in the future. https://inflationprotection.org/the-true-culprit-behind-the-great-recession-revealed/?feed_id=97441&_unique_id=6460943e87b2b #Inflation #Retirement #GoldIRA #Wealth #Investing #caused #great #heres #really #recession #the #who #RecessionNews #caused #great #heres #really #recession #the #who
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