What do you think contributed to the recession?
- Al Dave IsmailLv 78 years agoFavorite Answer
Many things contributed to the recession but two things stand out:
1) Unethical business practices by many bankers
2) Federal Reserve Chairman, Ben Bernanke raising the Federal Funds Rate by over 2.5 percentage points in just an 18 month period. That effectively made it so that millions home owners could no longer afford to keep up with their mortgage payments.
- ?Lv 78 years ago
People borrowing themselves so far into debt they will not live long enough to repay.
Financially savy people that did not run up debt, borrow against the equity in their homes for charge card debt and lived within their means are not struggling today.