If someone asked you to explain the 2008 financial collapse simply as to a child, how would you do it?
- Anonymous4 weeks agoFavorite Answer
The collapse was caused by the Bush administration's decision to stop regulating banks, and to allow them to do whatever they want. The Banks became greedy and made risky loans to people and corporations who should not get them and when those loans turned bad, many banks got into trouble and had to declare bankruptcy.
- 3 weeks ago
People are naturally greedy and selfish. So when people are left to do the right thing on their own it’s more than likely they will not.
- kswck2Lv 71 month ago
Not unless he can understand the concept of Predatory Mortgage Lending.
- OiyLv 61 month ago
The child will not get a buck even he has finished his homework.
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- RayLv 61 month ago
The government forced banks to loan money to people who could not pay it back. Over time many people had bought houses they could not afford and when a lot of people could not pay for it, they lost their homes and banks lost their income, so the economy crashed.
- JuliusLv 41 month ago
Get a bubble wand and tell the child to blow the biggest bubble in the world. Then take a sharp implement and suddenly burst it. The bubble is the market, which when it is broken is the collapse.
- Mark IXLv 71 month ago
Lots of very nasty men in big offices sold poor people home loans that they couldn't possibly afford to pay back. Then, when the poor people didn't pay back the loans the nasty men took their homes.