Is the US subprime mortgage crisis responsible for the worldwide credit crisis & recession?
Answers:
It certainly is! Greedy and idle Americans spent the money they did not have, carried loads of debts for having a honourable life one could not afford, exported the bad debts to other nation, asked the government to bail them out, laied the burden to the rest of the tax payers, collapsed the worldwide financial markets, .... What a great nation we have! If we still remember how Roman Empire fell, we should also realize our END IS NEAR.
Yes and No. The subprime mortgages accounted for $250 billion, about 5% of adjectives mortgages and a manageable sum during a growing economy. So yes, that's be the beginning. The problems grew bigger because the subprimes were package along with good mortgages and sold, resold again and turned up contained by the form of various strange and bizarre derivitives nobody can understand via Wall Street, guaranteed near fannie and freddie. When highly leveraged financial instruments fail, the cynical effect is magnified because of the leverage. It ultimately froze the credit markets up. Source(s): Old Stockbroker
The following site ( http://www.a2dvoices.com/realitycheck/co… )contains a great credit crisis time line of the events leading to the housing bubble and credit crunch.
It appears that our elected organization created the current economic problem inorder to subsidize housing.
Yes. My ridge lends money to people who can not retribution it back. They use to give me a penny or two contained by interest for every dollar I put into a savings account and they used it to loan to others a charges them a even larger interest. I carry nothing any more for saving my money but they still are lend money to those who can't pay it back.
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