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In 2008, the world witnessed the subprime loan crisis which was triggered by the collapse of Lehman Brothers, one of the largest investment banks in the US. The news sent a shockwave throughout the world, causing a “domino effect” of stock plunging through Europe, Russia, and Asian countries. The Dow Jones Industrial Average tumbled for six consecutive days from 14000 to 7000 dollars in October, 2008. Then what were the major contributing factors in causing the collapse of the bubble or the big free fall in stock prices?