The 2008 stock market crash took place on Sept. 29, 2008, when the Dow Jones Industrial Average fell 777.68 percent. In short, companies were lending to people with bad credit ratings, and basically, to people who would struggle to pay back the loans (if at all).

On September 15, 2008, concerns over the ability of financial institutions to cover their exposure in both the sub-prime loan market as well as credit default swaps led to further market instability. As mortgage defaults started to rise, the national economy started to falter, and fear crept into the credit markets.

In 7 of the 11 drops, it only took one year for the S&P 500 to recover to its previous all-time high price.

The main cause of the stock market crash 2008.

Lenders began to fear borrowers could no longer repay their loans. First published on Fri 10 Oct 2008 19.00 BST.

Once destabilization of the stock market occurs, this incident may be followed by a series of events that trigger an even larger decline in the market.

"Investors only concentrate on gold. Trading courses The risk:reward ratio

The London stock market suffered its third largest fall ever today in what analysts dubbed "the great crash of 2008", as a wave of panic selling swept the globe. Stock Market Crash 2008 was one of the greatest jolts that affected the world’s financial system the most.

2007.

Yesterday, in a further sign that the wider economy was being pulled into the crisis, shares in General Motors and Ford plunged on Wall Street over fears that the troubled automotive industry may not survive the downturn.

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US banks were exposed to these loans and eventually collapsed.

Leverage, IPO (Initial Public Offering) On March 13, 2008, Bear Stearns advised the Federal Reserve that its liquidity position had deteriorated, and that it would file for bankruptcy unless alternative sources of funds were made available. Record stock market falls in 2008 Chinese shares saw some of the steepest falls in 2008.

In fact, the series of events and the warning signs were visible from the year ahead, the crash occurs due to the ignorance of such signs.

The stockmarket turmoil shows confidence has not been restored despite America's $700bn (£380bn) bail-out, Britain's £500bn banking rescue plan and the coordinated interest rate cuts by the world's central banks. FOREX Until the stock market crash of 2020 , it was the largest point drop in history. In addition, the U.S. Treasury Department began supplying funds to help stabilize these companies, raising the national debt ceiling by $800 billion in the process. By the year 2008, the Federal National Mortgage Association (FNMA or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) either owned or guaranteed nearly $6 trillion in mortgage loans.

But by July 1932, the stock market hit a low that made the 1929 crash.



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