What was a major cause of the US recession that began in 2008? defaults on mortgages for homesconsumers not buying new homesdamage from Hurricane Katrinaa rise in the American stock market

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Justine Mckee

2 April, 14:16

What was a major cause of the US recession that began in 2008? defaults on mortgages for homesconsumers not buying new homesdamage from Hurricane Katrinaa rise in the American stock market

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Carmelo Goodwin · Answer 1

The correct answer is defaults on mortgages for homes

The Recession of 2008 was caused by the failure of the regulator to reign in on toxic mortgages. This has also been largely attributed to a breakdown in corporate governance that led to firms acting recklessly in issuing subprime mortgages