Ray asked in Social ScienceEconomics · 1 month ago

If someone asked you to explain the 2008 financial collapse simply as to a child, how would you do it?

7 Answers

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  • Anonymous
    4 weeks ago
    Favourite 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. 

  • 4 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. 

  • kswck2
    Lv 7
    1 month ago

    Not unless he can understand the concept of Predatory Mortgage Lending. 

  • Oiy
    Lv 6
    1 month ago

    The child will not get a buck even he has finished his homework.

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  • Ray
    Lv 6
    1 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. 

  • Julius
    Lv 4
    1 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. 

  • 1 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.

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