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did stress from oil prices lead to current economic crisis?

what factors played into this crisis? high oil prices? home foreclosures? i dont understand the stock market too well, so im a little confused as to whats really going on here...

Public Comments

1. The majority of the problems stemmed from the sub-prime mortgage business. The lenders and banks were giving out loans with arms (adjustable rate mortgages) to people that shouldn't have been able to obtain a loan because of their income or low credit score. The problem occurred when the interest rates went up so did the interest rates on the ARMS. The people that shouldn't have had the loans can't afford the new interest payments and therefore so many houses have gone into forclosure. The other problem is that all of these mortgages are tied to banks and investment companies. A lot of Investment banks used them in their portfolios. This casues the investment side problem since their is no money coming in. The banks have to eat the write downs to since they aren't recieving any payments for their homes. Instead, they have to take them over and sell it for a lower price. Over all, that is what caused the turmoil globally right now. By the way, "BUB" is not apparently to bright considering what the Bernackie and Paulson are doing in order to get the market to stabalize. "BUB" stated to blame it all on lending is naive?!?!?! REALLY?! He sounds naive for saying that considering all in all.
2. Well, the oil prices went up, the number of people working in good paying jobs went down accordingly and the people who got laid off or lost their jobs either are out of work or took jobs that didn't pay nearly as much and they couldn't make their payments. To say this is all about lending practices is naive.