Many of these events were said to be the reflections of 1930s great depression that brought fear to many individuals considering its a severe downturn in economic transactions and rapid rise in unemployment.
Mortgage-Backed Securities
The second repercussion was that large financial institutions had borrowed large sums to buy high risk mortgages so as to have more return , thinking that the housing prices may rise. But when the prices went bad . they found themselves at the point of bankruptcy. consequently even healthy banks stopped trusting each other in case of inter bank lending. So because of this distrust , the ability to provide loans or make loans even to credit worthy customers was declined.