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Credit was no longer available as a result of cascading failures triggered by defaults. The house of cards came tumbling down.
by ra1n85 8y ago
Credit was no longer available as a result of cascading failures triggered by defaults. The house of cards came tumbling down.
- dragonwriter 8y agoI don't disagree; the crash in the housing market was a direct result of a demand decrease which resultrd from credit tightening, which was itself a result of the wave of defaults which both revealed that current lending practices were unsustainable (which on its own would have led to tightening) and collapsed the huge market for mortgage-backed securities (which, itself, would have led to tightening). And so, as you say, the whole house of cards collapsed.