Why did the U.S. government intervene in the economy during the financial crisis in 2008?

The US government intervened during the subprime mortgage crisis (significant declines in home prices and mortgage deliquencies and foreclosures) because of numerous government bailouts. Thus, the US government tried to stabilize the their economic system during 2007-2009. It's a sad story because many American people were forced to file bankruptcy and foreclosure :(

Answered by flavour5 | 2024-06-10

The U.S. government intervened in the 2008 financial crisis by enacting a $700 billion bailout plan to stabilize the failing banks and prevent a wider economic collapse. This was in response to the subprime mortgage crisis that significantly threatened the financial sector. The goal of these actions was to restore confidence in the economy and prevent further economic downturns.
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Answered by flavour5 | 2024-12-26