Infographic: A Visual Guide to the Financial Crisis
The current financial crisis occurred from a domino-like effect in the housing market; one thing leads to another. The dot com boom, faith in home investment and historically low-interest rates lead people to started a home buying mania. The government and the media also kept saying how they doubted that the housing market would collapse anytime in the near future, which further encouraged people to buy houses. Large financial entities and regular citizens put too much stock in the housing market and when the housing bubble does collapse, everyone loses tons of money. If you’re curious about exactly how one event lead to another, this info graphic contains a very detailed flow chart.
