Vicious circle once the collapse gets underway

Foreclosures lead to falling confidence and prices, which draw more homeowners into negative equity, cutting off the abillity to borrow further against the value of their houses, which in turn leads to further foreclosures...

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The Global Financial Crisis
Immediate triggers of the financial crisis?
Bubble in US house prices collapsed
Vicious circle once the collapse gets underway
Household debt service ratio rose steeply
Personal savings rate evaporated
Demographic changes as baby boomers move to retirement
Large high risk loans predicated on rising house prices
Mortgage equity withdrawls no longer self sustainable
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