When the housing bubble collapsed, the entire borrowing and lending engine of the economy ground to a halt because:

Question

Quizplus · Accepted Answer

The collapse of the housing bubble led to a lack of trust in banks, making it difficult to determine which banks were safe to borrow from or invest in. This led to a general reluctance of banks and investors to lend or borrow money, causing the entire borrowing and lending engine of the economy to come to a halt. So, all the given options are true.

When the Housing Bubble Collapsed, the Entire Borrowing and Lending