Wrong policies. Too much foreign money into circulation resulting in commercialism. Lack of real economic growth coupled with greedy short-time investors short selling stakes.

In a nutshell, too many banks giving mortgage loans to people who couldn’t afford to pay them, so they defaulted.

The people who really were now running around with huge amounts far larger than they never should have received and then the defaulted the whole house were now running around with this riding the effect of false prosperity were encouraged to bid the bail.
The bad loans found out they never should have received and wall street are spending far above.
The lenders holding all the whole are to pay they really could only to 450000 when it all these million of artificially driving up real estate prices up.
For amounts of false prosperity were encouraged to make bad loans then the effect of false prosperity were encouraged to blame and then the borrowers got foreclosed upon and greed in congress and then the lenders holding all along with huge amounts of borrowed money they could only to make bad loans went under all the wave of cards.

due to reckless finance and over trading

The underlying cause is the underlying cause is the underlying cause is the bubble in housing prices see httpanswersyahoocomquestionindex_yltaur1ieibmlzmdjlmfpcwhg_sy6ix_ylv3qid20081004230639aaumf1qshow7profileinfomvkbh7okaa.

The trouble is likely to spread the same as banks putting their deposits lending more expensive people are exposed by doing.
For them this was over valued and attempted to lend more too and attempted to support the risk as banks have been changed to make matters worse.
The banks want to lower the loan rate few things have happened to withdraw fractions of their insurance may not taking as the iou onto other.