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=> 2007 U.S. Real Estate Collapse
On September 11 2001, the United States suffered the worst attacks ever, by terrorists, at the World Trade Center in New York City. The result was the loss of thousands of innocent lives due to the collisions of aircraft causing the collapse of trade center buildings themselves.
During the attacks, the financial world took a beating. The stock market starting collapsing too. Six days after, the DOW was down 685 points. To prevent a recession or even worse, another great depression, the US Federal Reserve System did something drastic: they started a rapid lowering interest rates to a rock bottom value.
This in turn, kept the US financial world (and probably the rest of the entire world) afloat. By lowering interest rates, people in the U.S. began to buy things: homes, land, etc. This kept the economy going and spurred job growth. Manufacturing, construction, land scaping, mortgages/loans/brokering, real estate sales thrived. From 2002 to 2006, the U.S. real estate market went crazy... too crazy.
Home sales went wild, home prices sky rocketed, real estate investing
became common place, loans became easy, and mortgage brokers enjoyed the
good life. All driven by greed...
All good things must come to an end, and in 2007 the real estate bubble