How did economic crisis began in USA?
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The crisis started in the home mortgage market,called “subprime” mortgages, and is now spreading beyond subprime to prime mortgages, commercial real estate, corporate junk bonds, and other forms of debt.
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In USA, it began with the crash of the Wall Street Exchange in 1929, when USA could not recover back loans Fearing a fall in price, people made frantic efforts to sell their shares.
On a single day, 13 milon shares were sold Factories shut down, banks became bankrupt, exports fell, farmers were badly hit, leading to unemployment.
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