Why was there a financial crisis in the United States in 2008?
This is a question that is subject to a tremendous amount of disagreement. One’s answer to this question generally depends on whether one is a Democrat or a Republican. There is general agreement on the idea that the crisis was caused by a housing bubble, but there is much disagreement as to why that bubble existed and why it led to a crisis.
During the early 2000s, the US housing market boomed, creating a bubble. House prices went up too rapidly. People took on what proved to be more debt than they could afford...
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While it is true that the collapse of the housing market lead to the 'Great Recession' we might also note this contributing element: You can not fight two very expensive wars while giving everyone a substantial tax cut, ALL with borrowed money, and not have an adverse impact upon the economy.
Eventually the bill must be paid. Everyone wants to attend the party but no one wants to stay and clean up.