Explain What Started the Financial Crisis of 2006 and Why

question 42

Essay

Explain what started the financial crisis of 2006 and why it escalated on a such a widespread scale.

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Definitions:

Asset

Any resource owned or controlled by a business or individual that is expected to produce positive economic value or future benefit.

Lower Deficit

A reduction in the amount by which a government's spending exceeds its revenue.

Raise Taxes

The act of increasing the amount of money the government requires citizens or businesses to pay on their income, property, or purchases.

Social Security Trust

is a fund that holds the financial assets of the Social Security Administration in the United States, used to pay out benefits to retirees, disabled individuals, and survivors.