What caused the recession of 2008 ?
The recession of 2008 turned America upside down, and changed how allot of generation Xers viewed the economy. The wakeup call came in the form of debt, either credit card, Mortgage or other types of loans or credit. Home mortgages were one of the key contributors to the great recession. Mortgage prices were on the rise. Most Americans strategy was to buy a house and hold it for 2-5 years then sell it for a great profit. Baby boomers warned allot of the generation Xers that mortgage prices cannot rise forever. Some listened but most didn’t. During this time people would ask how could a person who makes $80,000 a year get approved for a mortgage of $600,000. With interest rates on average at the time of 6% on the low side. http://mortgage-x.com/general/national_monthly_average.asp?y=2008 The month payments on a 30 year fixed rate mortgage would be $3,597 a months. This mortgage would cost $43,164 a year...