Published on October 21, 2008
The Subprime Collapse
Subprime Lending means giving loans to people who are high risk.
including No Income, No Job and No Assets
Or… Ninja Loans
Banks sold loans and credit risks to investors called Securitization .
“…increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people.” New York Times, September 30, 1999
The Financial Perfect Storm
Dramatically cut interest rates
encouraged more borrowing.
increasing home ownership,
consumer spending & house prices
House prices increased at a much higher rate to median household income
House prices became unaffordable
43% …of 1st time buyers made no down payments at all.
People with poor credit found it…
difficult to pay their mortgage.
Properties with foreclosure activities.
The two giants in securitization…
Wall Street was Greedy .
Short term profit was more important than the good of the people.
Chief Executive Lehman Brothers Richard S. Fuld, Jr. Earned $34.4 million in 2007.
Congress did not act in time.
We all pay the price.
Causes of the United States housing bubble; Credit rating agencies and the subprime crisis; Government policies and the subprime mortgage crisis; Causes of ...
Loren Keim, at Lehigh University, explains in layman's terms how subprime mortgages helped grow home ownership and how they are affecting the ...
The collapse of the subprime mortgage market has created depression-like conditions in the housing market and driven the economy to the brink of recession ...
Subprime crisis impact timeline Subprime mortgage crisis; Major dimensions. Subprime crisis impact ... Bloomberg - Subprime Collapse to Global Financial ...
BREAKING DOWN 'Subprime Meltdown' ... The subprime collapse could mean doom and gloom for housing, equities and the overall economy. ETFs & Mutual Funds.
As always, the market's way ahead of the Fed... BEN BERNANKE told politicians in Washington last week that the collapse of subprime mortgage companies had ...
When the subprime auto loan market topples, it'll be messy. But there's a way to profit from this impending collapse - here's what you need to know...
Subprime Mortgage Crisis ... Because the bond funding of subprime mortgages ... the collapse of subprime lending fueled a downward spiral in house ...
The collapse of the subprime mortgage market in late 2006 set in motion a chain reaction of economic and financial adversity that has spread to global ...
The Collapse Of The Subprime Market. The Collapse of the Subprime Market SWilson April 17, 2008 Table of Contents Subprime lendingвЂ¦вЂ¦вЂ¦вЂ ...