The 2008 economic crisis was a series of events in the United States and abroad that caused massive economic disruption. Thousands of jobs were lost and businesses closed.
Credit Default Swaps On Mortgages Caused Most Of The Problems. Deregulation allowed banks and other financial institutions to trade credit default swaps based on mortgages. Financial institutions began bundling and trading junk mortgages, and when those loans went unpaid, it caused the entire system to collapse.
The Community Reinvestment Act Did Not Cause The Collapse. The Community Reinvestment Act attempted to help low-income people acquire homes. It was not the cause of the economic crisis.