The "perfect financial storm" that developed in 2008, which put the U.S.economy was on the verge of collapse was characterized by all of the following EXCEPT:
A) The housing price "bubble" burst in 2006 and began a sharp decline.
B) Stock market prices peaked in 2007 and began a sharp decline.
C) Many of the mortgage-related debt securities originated and sold to others, or held, by banks became difficult to value during the perfect financial storm and quickly became known as "tombstone" assets.
D) Individuals were defaulting on their home mortgages in increasing numbers due to falling home prices and increasing unemployment.
E) Business firms and financial institutions, who had borrowed heavily during years of easy money and low interest rates, were faced with their own financial difficulties as economic activity slowed markedly
Correct Answer:
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