Help on current economic crisis and stock market crash of 2008 questions?
How have each of the following topics contributed to the stock market crash of 2008 and the subsequent financial crisis and recession?
The Gramm-Leach-Bliley Act of 1999
Housing Bubble
Short Selling
Buying on Margin
Subprime/adjustable rate mortgages
Thank you!）
Answer：
Teh Housing Bubble started in 2007 when those who couldn’t afford mortgages were given adjustable rate mortgage ARM and eventually foreclosed.
Short Selling is a Wall Street technique to take advantage of a stock going down and it’s a bet that stocks would go down further
Buying on a margin I think is a hedge bet
Subprime/adjustable rates change if the mortgage taker fails to pay on time.
Posted: July 29th, 2010 under US Stock Market.
Tags: current economic crisis, stock market crash