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Message: <blockquote data-quote="Campbell44" data-source="post: 1873" data-attributes="member: 28">Impressive knowledge - did you study econ?I would only add a link to what happened with house prices to the crash. So many Americans had purchased houses that demand for housing fell before 2007. That coupled with repossessions from sub prime borrowers caused US house prices to begun to fall. Once house prices fell, lenders became more wary of lending because they could no longer just repossess a house and make their money back. This caused prices to depress even more, making the bonds that were based on the loans even less valuable.</blockquote>

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