Great recession (2000s economy)

The Great Recession was caused by numerous things but one of the main causes subprime mortgage crisis. Because of the growing housing market, more banks loaned to people with bad credit scores, who in turn failed to may those mortgages back. More people wanted to own homes because of this growing market, which meant the values of these houses were rising. This created a bubble which popped in 2007, the value of these houses dropped, people who failed to pay the mortgages back had to foreclose these homes, and banks lost money. The economy plummeted after the housing market failed. Millions of Americans lost their jobs, homes, businesses, and finances.