One Glance To Subprime Crisis USA 2008

  • Cause of US housing bubble peaked in 2005 -'06
  • Rising housing prices had encouraged borrowers to assume risky mortgages in assumption of that they would be able to refinance terms
  • Borrowers was unable to refinance because interest rates began to rise and housing prices started to drop 2006-'07
  • As easy initial terms, expired defaults and foreclosure activity increased
  • Causes : inability of homeowners to mortgage payments, bad monetary and housing policies, international trade imbalances, poor government regulation

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