why did the global economy enter a recession in 2008?\nbanks invested in loans people could not pay…
why did the global economy enter a recession in 2008?\nbanks invested in loans people could not pay back.\nthere was a shortage of natural resources.\ndebt was at an all - time low.
Answer
Answer:
Banks invested in loans people could not pay back.
Brief Explanations:
The 2008 global recession was largely due to the sub - prime mortgage crisis. Banks had made risky loans (sub - prime mortgages) to borrowers who couldn't repay them, leading to widespread defaults and a financial system meltdown. Shortage of natural resources was not the main cause, and debt was high, not at an all - time low.