Final answer:
The market value of outstanding real estate mortgage debt as of December 2008 was greater than the market value of corporate equities.
This was partly a result of the Housing Bubble and the 2007 Financial Crisis, which saw housing equity peak at $13 trillion in 2006 before prices fell and contributed to the Great Recession.
Step-by-step explanation:
As of December 2008, the market value of outstanding real estate mortgage debt was greater than the market value of corporate equities, and also greater than the market values of U.S.
Treasury securities, corporate and foreign bonds. This financial situation was a repercussion of the Housing Bubble and the 2007 Financial Crisis.
In the years leading up to the crisis, housing equity in the United States had peaked at a significant $13 trillion in 2006, indicating a strong market value for homes, less what was owed on mortgages.
However, when housing prices declined, it led to a situation where bank and household finances were strained, which was a contributing factor to the Great Recession of 2008-2009.
The market value of outstanding real estate mortgage debt as of December 2008 was greater than the market value of corporate equities (option A).
During that time, the housing market experienced a bubble, with home prices reaching record highs. Many individuals took out mortgages to purchase homes, resulting in a significant amount of mortgage debt.
The bursting of the housing bubble in 2008 led to a financial crisis.