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Q.

What is sub prime crisis?

Tags: sub prime crisis
Asked by Sanjeev Kuligod, 23 Mar '08 04:52 pm
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Answers (3)

1.

The subprime mortgage crisis is a problem which manifests itself through liquidity issues in the banking system. This is because of the increase in the number of foreclosures in the United States of America in late 2006. It triggered a worldwide financial crisis in 2007 and 2008.
Answered by Akshay Kalbag, 23 Mar '08 05:01 pm

 
  
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2.

When a crises reaches it prime and it is divided by two or make it it sub then it is sub prime crises
Answered by Ramu, 23 Mar '08 04:54 pm

 
  
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3.

The subprime mortgage crisis is an ongoing problem manifesting itself through liquidity issues in the banking system owing to foreclosures which accelerated in the United States in late 2006 and triggered a global financial crisis during 2007 and 2008. The crisis began with the bursting of the US housing bubble and high default rates on "subprime" and other adjustable rate mortgages (ARM) made to higher-risk borrowers with lower income or lesser credit history than "prime" borrowers. Loan incentives and a long-term trend of rising housing prices encouraged borrowers to assume mortgages, believing they would be able to refinance at more favorable terms later. However, once housing prices started to drop moderately in 2006-2007 in many parts of the U.S., refinancing became more difficult. Defaults and foreclosure activity increased dramatically as ARM interest rates reset higher. During 2007, nearly 1.3 million U.S. housing properties were subject to foreclosure a ...more
Answered by SHYAM KUMAR, 23 Mar '08 04:56 pm

 
  
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