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o Initially housing demand increased due to increase in subprime loans. Thus, housing prices were increasing. Sanctions of subprime loans increased further increasing housing demand
o Initially housing demand increased due to increase in subprime loans. Thus, housing prices were increasing. Sanctions of subprime loans increased further increasing housing demand and prices even more. Now was the tipping point, where the demand reached its maximum along with the price, suppliers produced a lot and supply increased. Due to all this supply, which was very high, caused demand to be artificially created. As a result, housing price collapse was inevitable, which materialized in Au
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