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What caused the housing bubble

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Problem 1: The bursting of the housing bubble in 2007 and 2008 caused many personal and corporate bankruptcies. Many individuals lost their homes, and many banks went bankrupt. The tax payers spent around $1 trillion dollar bailing out many banks. Many things have been blamed for the housing bubble - fear and greed, corruption in the banking sector, too little regulation, too much regulation, and the Federal Reserve printing too much money. What caused the housing bubble and what changes to US laws or banking structure could prevent future problems?

Reference no: EM132945370

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