sub prime crisis wat is it ALL abt?

Answer 1

Financial companies made loans at special low rates so that people who could not otherwise afford a house, could. However, the home buyers did not think about that at a point in time, their loan rate would adjust upward. When it did, they people could not pay for the home. So, businesses that made a heavy practice of sub prime loans, are not stuck with homes they cannot pay and loans they had taken out, that are tough for them to pay. People who invested in these companies are at risk in not getting their money back.
Sub prime basically, money was borrowed and then loaned out at rates that would not pay back the cost of the money borrowed to pay the lenders. Clear as mud, eh?