"The 2007 financial crisis in the USA happened because the Federal Reserve Bank (FED) made it easy for people to borrow money. They did this by keeping interest rates low, which encouraged banks to give out lots of loans, especially for buying houses.

But these loans were often risky, and when people couldn't pay them back, it caused big problems. Housing prices went up too quickly because of all the loans, creating bubbles that eventually burst.

When the FED started to increase interest rates, it became harder for people to borrow money, and housing prices dropped fast. Banks lost money, and this triggered the 2007 financial crisis."#HotTrands