DislikedHello Obaidah,
It's a long story; but not a very complicated one. I'll give you one example, and probably you have/had lived through it;
Uncontrolled/leveraged lending and fractional system (as well as it allowed huge growth since 15-20 years, it has the same effect on the other side of the stick)
Pre 2007:
1) You go to a bank/website
2) Fill out some info, doesn't have to be 100% accurate
3) Get credit you ask for
4) Spend
5) Drive prices (goods, housing, ...; inflation to summarize)
6) Never pay back/pay some of it
7) Return the bad account and the goods you bought (car/house/etc...)
8) Bank writes it down
(I know people who was given $250K-$500K loans to buy house, when their income was around $25K)
This crisis will force both entities (banks/brokers) and people to live by their means.Ignored
I recommend you read something else as this sentence is now concluded.