What is the subprime mortgage crisis? Can you make it simple and clear? 5

The subprime mortgage crisis is also known as the subprime mortgage crisis, also translated as the subprime crisis. It refers to a storm that occurred in the United States due to the bankruptcy of subprime mortgage lenders, the forced closure of investments, and the drastic. It has led to a looming illiquidity crisis in the world's major financial markets.

Banks lend money to people who don't have a lot of income.

Now society is giving less and less space for those people to live.

The amount that contributed to their inability to repay the loan.

Bank deficits have led to a series of financial and real estate impacts.

The ensuing crisis.

There are several types of credit ratings in the United States, in addition to those excellent ratings, there is also a low credit rating, which is called a secondary credit rating! To put it simply, the subprime mortgage crisis is that the lending institutions are uneasy to stipulate that they will issue loans to the subprime loan grade without restrictions, and eventually they will not be able to repay the loans due to the housing prices, resulting in the bankruptcy of the banks, and then triggering a series of chain reactions, leading to the decline of the entire national economy!

The simplest explanation is that the bank cannot recover the loan.

There is a very easy-to-understand explanation of the subprime mortgage crisis in the space log, and I think you must not understand the reason after reading it.

Subprime mortgages are loans to people who have bad credit and poor repayment ability.

And that's what happened because of the economic pressure, and the loans couldn't be recovered.

What's the next loan crisis? The second loan crisis is also known as the second loan crisis and the second loan storm. The full name is the second mortgage crisis, which was a financial crisis caused by the turmoil in the second mortgage market in the United States.

In August 2007, the storm caused by the bankruptcy of the second mortgage lender and the forced closure of investment** swept through the world's major financial markets such as the United States, the European Union, and Japan.

The immediate cause of the turmoil in the U.S. second mortgage market is the sharp rise in U.S. interest rates and the continued cooling of the housing market. A second mortgage is a loan offered by some lenders to borrowers with poor credit and low income. In the past few years, when the U.S. housing market was at its peak, the second mortgage market developed rapidly, and borrowers who were generally considered insolvent also obtained home loans, laying the danger for the formation of the second mortgage market crisis.

In the two years to June 2006, the U.S. Federal Reserve raised interest rates 17 times in a row, raising the federal** interest rate from 1% to a significant increase in interest rates, increasing the repayment burden on homebuyers. And since the second quarter of 2005, the U.S. housing market has begun to cool down significantly. As the number of home prices falls, it can be difficult for homebuyers to get financing through mortgages.

As a result, many borrowers in the subprime mortgage market were unable to repay their debts on time, and the crisis in the subprime mortgage market began to emerge and became more and more intense. The subprime loan crisis refers to the surge in defaults and credit crunch in the subprime residential credit industry in the United States, which began to cause shocks, panic and crises in the international financial market in the summer of 2007.