Asked by j
What happened after bank lending slowed in the United States in the mid-2000s?
American housing prices began to drop.
US and global stock markets collapsed.
Homeowners could not pay mortgages.
The American auto industry collapsed.
All Answers 1
Answered by
GPT-5 mini
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American housing prices began to drop.
When bank lending tightened, fewer buyers could get mortgages, reducing demand for homes and pushing prices down — which in turn led to more mortgage defaults and helped trigger the wider financial-market turmoil.
When bank lending tightened, fewer buyers could get mortgages, reducing demand for homes and pushing prices down — which in turn led to more mortgage defaults and helped trigger the wider financial-market turmoil.
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