Was the creation of the subprime issue good for the stock market or bad (trick question?)? Good for the ECONOMY or bad? Elaborate as to why or why not.
Was the creation of the subprime issue good for the stock market or bad (trick question?)? Good for the ECONOMY or bad? Elaborate as to why or why not.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Was the creation of the subprime issue good for the stock market or bad (trick question?)? Good for the ECONOMY or bad? Elaborate as to why or why not.
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The us subprime mortgage crisis was considered as multinational financial crisis that occured between 2007 and 2010
it will occur when bank sold too many mortgages to feed the demand for mortgage backed securities. Hedge funds,banks and Insurance companies caused the subprime mortgage crisis,Hedge funds and banks created mortgage backed securities. Demand for mortgages led to an asset bubble in housing
Most of the blame is on the mortgage originators or the lenders.lenders were the ones who advanced loans to people with poor credit and a high risk and default
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