It seems that all at once the stock market started dropping. Why is it dropping so fast? What are the causes? Please make sure your answer is educated, specific and NOT a blind guess. Thanks.
The stock market is falling so fast due to banks not being able to lend out money. Many of the top banks gave out mortgages to people that are now foreclosing so those loans are not being paid back and that leaves the banks in a deficit. Banks are one of the nation’s main source of income so if banks can’t lend money, no money is being generated or spent and this causes the stock market to slow drastically. No one is buying anything because no one can get credit to buy homes, cars or loans so this in turn slows our economy. It’s really messed up