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One of the major problems that led to the financial crisis was the “housing bubble.” What is meant by this term?
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4 votes
One of the major problems that led to the financial

crisis was the “housing bubble.” What is meant by this
term?

User Erik Van Oosten
by
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1 Answer

15 votes
15 votes

Answer:

A housing bubble a sustained but temporary condition of over-valued prices and rampant speculation in housing markets. The U.S. experienced a major housing bubble in the 2000s caused by inflows of money into housing markets, loose lending conditions, and government policy to promote home-ownership.

User Stew C
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