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This article analyzes the psychological underpinning of our recent Millennium Housing Boom in California, specifically the disproportionately influential number of speculators who bought, dragging others with them, during the final phase of the housing boom believing home prices would increase for ever more.
This article analyzes the psychological underpinning of our recent Millennium Housing Boom in California, specifically the disproportionately influential number of speculators who bought, dragging others with them, during the final phase of the housing boom believing home prices would increase for ever more.Between 2002 and 2005, the Millennium Housing Boom ignited and formed a misunderstood mushroom cloud over the housing market, ultimately vaporizing trillions of dollars of personal wealth across the nation. After the events of 9/11, the federal government failed to maintain the short-term interest rates they had then recently increased to correct the 1999-2000 abnormal ballooning of the real estate (and other asset) market(s). Thus, with prematurely lowered market rates, accompanied by reduced tax rates and increased spending, the federal government set the stage for the present Great Recession’s economic devastation of asset values, both real estate and stocks.
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