Final answer:
Common features of the 2008 stock market crash and previous market crashes include excessive speculation, asset bubbles, and leverage cycles, leading to a period of euphoria followed by a sharp decline in stock prices and financial distress.
Step-by-step explanation:
Some common features of the 2008 stock market crash and previous market crashes, such as Japan's in the 1990s or the internet bubble around the turn of the millennium, include excessive speculation, asset bubbles, and leverage cycles.
In all these cases, there was a rapid increase in the value of stocks or assets, leading to a period of euphoria and overvalued investments. Eventually, the bubble burst, causing a sharp decline in stock prices and widespread financial distress.
Moreover, in each instance, investors had borrowed money to invest in these inflated assets, and when the prices plummeted, they were unable to repay their loans, resulting in bankruptcies and a ripple effect on the economy.
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