The 2008 Financial Crisis

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In the Fall of 2008, the stock market had crashed for the second time in history. The first was in 1929. In this economic crisis many were to blame. The 2008 economic crisis was mainly blamed on the democrats, republicans and many other groups that share the blame.
October of 1929 marked the day where the first significant stock market crash was to happen in the U.S. This market crash had lead to the Great Depression because people were too poor to buy any stocks and many people had lost their savings when banks had failed. Also, businesses were not doing so good either because nobody was investing in the stock market and because they could not get loans. The cause of this crash was due to a growth of bank credit, loans, and overvalued stocks. …show more content…
Another group who were also at fault for this financial meltdown are mortgage brokers who sold home buyers with poor credit subprime, adjustable rate loans with low initial payments, but exploding interest rates. Formal Federal Reserve chairman Alan Greenspan encouraged Americans to take out these adjustable rate mortgages. This would then lead to with a much higher payment that the homeowner could not afford, There was also a collective belief that all home prices would keep rising no matter how high or how fast they had gone up.
During the stock market crash of 2008, there was not just one political party or group that was at fault. There seems to be many layers of different responsibilities when it comes to placing blame for this economic crisis. The political party who shares the blame for the stock market crash of 2008 is the democrats, republicans, and other

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