Cause of collapse


2 Answer(s)


This video gives you a good idea on why the recession happened -

http://www.youtube.com/watch?v=BO_JXFZhdsQ



Basically recession is not due to a single factor. It is generally an outcome of a small loophole in the economic policies implemented by the banks in the long run. In the recent case it was caused mainly due to real estate that was due to the low interest rates for home loans provided by banks.