English, 07.01.2021 20:00 shdaigle8693

Someone read this paragraph and tell me if its chronological order, compare and contrast, problem and solution or description. whoever gets it right I will give brainlist. Many people are confused about why our economy went to shambles in 2008. The crisis was actually the result of a combination of many complex factors. First, easy credit conditions allowed people who were high-risk or unworthy of credit to borrow, and even people who had no income were eligible for large loans. Second, banks would bundle these toxic loans and sell them as packages on the financial market. Third, large insurance firms backed these packages, misrepresenting these high-risk loans as safe investments. Fourth, because of the ease of acquiring credit and the rapid growth in the housing market, people were buying two or three houses, intending to sell them for more than they paid. All of these factors created bubbles of speculation. These bubbles burst, sending the whole market into a downward spiral, causing employers to lose capital and lay off employees. Consumer spending then plummeted and most businesses suffered. The economy is like a big boat, and once it gets moving quickly in the wrong direction, it’s hard to turn it around.

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