As an article in Forbes points out, there were numerous causes related to the crisis, including the push for short-term profits in the private lending sector and the collapse of the housing market in 2007. Homeowners found themselves owing significantly more on their homes than the current value of their properties. The crisis spread to Wall Street, and declining stock prices eroded economic security even more by undermining investments that people had made as part of their retirement planning. The impact on the banking industry led to a reduction in available credit for businesses as well as individuals. Many companies suspended or canceled expansions, closed plants, furloughed workers or reduced benefits, and unemployment rates soared along with foreclosure rates and
As an article in Forbes points out, there were numerous causes related to the crisis, including the push for short-term profits in the private lending sector and the collapse of the housing market in 2007. Homeowners found themselves owing significantly more on their homes than the current value of their properties. The crisis spread to Wall Street, and declining stock prices eroded economic security even more by undermining investments that people had made as part of their retirement planning. The impact on the banking industry led to a reduction in available credit for businesses as well as individuals. Many companies suspended or canceled expansions, closed plants, furloughed workers or reduced benefits, and unemployment rates soared along with foreclosure rates and