Essay On The Stock Market Crash Of 2008

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It stock market crash of 2008 happened in the fall of 2008. The crash happened due to a couple of reasons. The first reason was banks were giving out subprime mortgages to people because the housing market in the United States was booming. The second reason was because banks started to go bankrupt because people weren’t paying back their loans and the third reason was that the government refused to help the big banks until after the stock market crashed. The stock market had not had a crash since the 1930’s. In 2007, the housing market in the United States was booming. Banks were giving out subprime mortgages to buy new houses. “A subprime mortgage is a housing loan that’s granted to borrowers with impaired credit history. Often, …show more content…

The stock price of a company is based on how much a company earns. If a company does well, then its stock prices go up. The Dow Jones is a way to tell how good the stock market is doing. It is an average of thirty very large companies including Nike, Disney, Apple, Walmart, and Visa. The Dow was at an all time high of 14,164.43 on October 9 of 2007. After 18 months the Dow Jones was at 6,594. It had dropped 50%. (Amadeo, 2016) The actual day of the stock market crash of 2008 was when the Dow dropped over 777 points in one day. It was the largest single day drop in history. The drop was because the government rejected the bank bailout bill. Companies and families got very scared. People started losing there jobs. The week after September 29th, the Dow kept dropping. The Dow went below 10,000 point for the first time since 2004. (Kosakowski) It didn’t start going back up until sometime in 2009. 
 The stock market crash of 2008 was the worst since the Great Depression of 1930’s. The banks and the government caused it because they gave out subprime mortgages to people who couldn't pay back the money. So banks ended up going bankrupt, the stock market crashed and people lost their jobs. It took 18 months and the government to bailout companies in trouble before the stock market started going back up and the United States to get

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