The bursting housing bubble in the United States that precipitated the Great Recession was caused by

Question

Quizplus · Accepted Answer

All of the factors listed contributed to the bursting of the housing bubble and subsequent Great Recession. Risky lending practices, such as subprime mortgages, allowed people with poor credit to take out loans they could not afford. Assumptions that housing prices would continue to rise led to inflated home values and unsustainable mortgages. Questionable practices by banks, borrowers, and government officials, such as predatory lending and insufficient regulation, exacerbated the problem.

The Bursting Housing Bubble in the United States That Precipitated