2007-12-10 04:44:19 · 5 answers · asked by tuthutop 2 in Business & Finance ➔ Renting & Real Estate
Hi there.
The sub-prime market collapsed.
Sub-prime is that group of people who have poor credit histories but still want a mortgage, so the companies lend to them at a higher than usual rate. They got far too greedy by relying on property going ever up in price, so that they could always foreclose - but the market price went down, so if they did foreclose they still lost money. once their debt was higher than their assets, panic set in.
Cheers, Steve.
2007-12-10 04:54:12 · answer #1 · answered by Steve J 7 · 1⤊ 0⤋
Subprime - means lending to "less than the best" borrowers.
2007-12-10 12:52:50 · answer #2 · answered by Eddie D 6 · 0⤊ 0⤋
the sub-prime crisis
2007-12-10 12:49:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Subprime is the current.
2007-12-10 12:49:53 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Bank **** Up. through greed.
2007-12-10 13:09:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋