Recession!

could someone please explain how the recession began in REALLY simple terms? I will rep them- please!!!! and quote me!!!!!!!!!PLEASE!!

could someone please explain how the recession began in REALLY simple terms? I will rep them- please!!!! and quote me!!!!!!!!!PLEASE!!

American banks lent too much money to people who couldn't pay it back. When foreclosure was made, the collateral wasn't enough so the banks lost a lot of money. This affected the world's stock markets and punched a British economy that relied too much on the banks. The banks couldn't afford to lend businesses the big money they needed, so jobs went under threat. Credit needed for buying stuff could not be obtained by people so the sellers of various things struggled to make money. The economy slowed down to a halt.

I think.

In you sig what do you mean by results day has gone?

Were Lehman brothers responsible for the whole thing? well mainly?

collision of an Asteroid with the Earth

They were all responsible to some extent, Lehman Brothers and Citigroup included. They all lost loads of money, and Lehman brothers were affected the worst so really payed the price for it.

so did it affect world economies?
did it affect different markets?
like the credit and housing?
are all markets linked somehow?

Yes, yes, yes and yes.

All markets are linked by the banks and the stock market.

The world economy is so connected at the moment that something small like house prices in Japan can indirectly effect the interest rates on mortgages in the UK.

could someone please explain how the recession began in REALLY simple terms? I will rep them- please!!!! and quote me!!!!!!!!!PLEASE!!

It began because of greed people in power exploiting the economy for they own personal gain.

Could have wrote more in detail but i'm going on u tube to see some videos

You might find this video useful: http://www.crisisofcredit.com/