Banks loan out money for morgage.
People cant pay for the morgage.
Bank loses money
Bank goes bankrupt
A lot of people cant pay the banks
Stock goes down, the stocks begin to fail, everyone with stock loses money.
Companies begin to lose money because their stock isn’t worth as much
They cant pay their employers, people lose their jobs
They can’t buy as many things, we buy things from other countries, mexico, china etc
The companies that aren’t selling anything lay off people in other countries, everyone in the other countries don’t have money, all the countries that depend on that country has the same thing happen to them.