How Did Securitization and the Bursting of the Housing Bubble

question 18

Essay

How did securitization and the bursting of the housing bubble contribute to the Financial Crisis of 2007-2009?

---

Definitions:

Finished Product

A good or product that has completed the manufacturing process and is ready for sale or use by the consumer.

Efficient Way

An efficient way refers to a method or approach that achieves a goal with minimal waste of time, resources, or effort.

Pure Communism

An idealized form of communism where there is no class division, the state has withered away, and the means of production are communally owned, leading to equal distribution of resources.

Capitalism

An economic system where private individuals rather than the state own and operate the means of production and distribution, driven by the motive of profit.