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Historical Real Estate Market Crashes
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The Great Depression (1929)
Causes: Speculation, stock market crash, bank failures. Consequences: Widespread foreclosures, plummeting property values, high unemployment.
Savings and Loan Crisis (1980s)
Causes: Deregulation, risky lending practices, high interest rates. Consequences: Collapse of savings and loan institutions, government bailout, tightened lending standards.
Japanese Asset Price Bubble (1991)
Causes: Loose monetary policy, land speculation, overinvestment. Consequences: Prolonged economic stagnation, deflationary pressures, financial institutions burdened with bad loans.
Asian Financial Crisis (1997)
Causes: High external borrowing, asset bubbles, fixed exchange rates. Consequences: Currencies collapsed, IMF intervention, economic reforms in affected countries.
Dot-com Bubble Burst (2000)
Causes: Excessive speculation on tech companies, unrealistic growth expectations, easy capital. Consequences: Stock market crash, tech companies' valuation plummet, increased regulation.
U.S. Housing Market Bubble (2007-2008)
Causes: Subprime mortgage crisis, housing speculation, deregulation in the financial industry. Consequences: Global financial crisis, massive foreclosures, banking sector bailout.
European Sovereign Debt Crisis (2010)
Causes: High government debt levels, banking problems, recession and structural weaknesses. Consequences: Austerity measures, bailout packages, significant economic reforms.
Chinese Stock Market Turbulence (2015)
Causes: Stock market bubble, high levels of margin lending, economic slowdown. Consequences: Stock market crash, short-term economic confidence loss, government intervention.
Canadian Housing Market Slowdown (2017)
Causes: Overvaluation of housing markets, foreign investor speculation, rising interest rates. Consequences: Market correction, tougher mortgage rules, decrease in housing affordability.
COVID-19 Pandemic Impact on Real Estate (2020)
Causes: Global pandemic shutdowns, economic uncertainty, changes in housing demand patterns. Consequences: Shift to remote work, suburban housing demand surge, commercial real estate downturn.
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