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The Subprime Mortgage Crisis is an ongoing economic problem that has become more apparent in 2008 and has resulted in reduced liquidity in the global credit market and also the banking & financial systems. This crisis has exposed the weakness in the global financial system and also the regulatory framework that is overlooking them. Some of the reasons for this crisis are: 1. The US real estate market crash 2. High default rates on Subprime loans & 3. Subprime Mortgage backed securities
Wiki User
∙ 15y ago
Wiki User
∙ 12y agoThe Subprime Mortgage Crisis is an ongoing economic problem that has become more apparent in 2008 and has resulted in reduced liquidity in the global credit market and also the banking & financial systems. This crisis has exposed the weakness in the global financial system and also the regulatory framework that is overlooking them.
Some of the reasons for this crisis are:
1. The US Real estate market crash
2. High default rates on Subprime loans &
3. Subprime Mortgage backed securities
A Subprime loan is a loan that is granted to a borrower who does not qualify for loans owing to a variety of risk factors like low income level, bad credit history etc.
Wiki User
∙ 15y agoThe term 'global economic crisis' refers to the current period of global recession from a period of very fast growth, brought on by poorly controlled economic conditions.
Although it was present in many of European countries, the main cause is said to be irresponsible 'sub-prime' lending by banks and financial institutions in the USA, as it was made viable economically if lenders did not realistically expect a return.
As a result, the crisis deepens as confidence in all markets drops, causing a chain reaction that started in the finance sector.
Wiki User
∙ 15y agoGlobal economic crisis refers to an economic scenario where the economies of countries all over the world have taken a beating. The GDP's of countries are going down are in -ve zone.
There is severe liquidity crunch and countries & governments around the world are frantically taking steps to combat this issue
Wiki User
∙ 14y agowhat is your view on the current global economic crisis?
paulbenn
It shows that capitalism is uncontrollable and unpredictable.
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What do you mean by global economic crisis?
in July 2006
Is capitalism the cause of global economic crisis?
yes pretty much!
What is the current Philippine economic problem?
The Philippine economy is currently facing the problem of cushioning the effects of the global financial crisis on the productive sectors as well as on the most vulnerable group, the poor.
What is economic meltdown in relation to global economic crises?
A crisis is a dangerous situation, whereas a meltdown (by analogy to a nuclear reactor) is a complete collapse. A crisis, if not handled correctly, can result in a meltdown.
The Coca-Cola Company global economic crisis impact?
I don't yet please make an analysic of it
What do you mean by global economic crisis?
in July 2006
What bad economic events has impacted the global economy?
The recent Global Economic Crisis is one example of many
What are the G20 aims?
To find solutions for the global economic crisis.
Is bank responsible for the recent global economic crisis?
maybe
Is the economy in Canada feeling the American economic crisis?
Yes. This economic situation has global effects.
Why do sand dollars stay away from algae?
Global economic crisis
Is capitalism the cause of global economic crisis?
yes pretty much!
What are the current economic current issues in Philippines?
The Philippine economy is currently facing the problem of cushioning the effects of the global financial crisis on the productive sectors as well as on the most vulnerable group, the poor.
CausesEffects and Remedies of global economic crisis?
http://wiki.answers.com/Q/CausesEffects_and_Remedies_of_global_economic_crisis"
Contributed to the global economic crisis during the great depression?
Postwar reparations led to hyperinflation and economic collapse in Germany.
What has the author Holly Dolezalek written?
Holly Dolezalek has written: 'The global financial crisis' -- subject(s): Global Financial Crisis, 2008-2009, Juvenile literature, Economic history
What has the author XIAOLAN FU written?
XIAOLAN FU has written: 'China's role in global economic recovery' -- subject(s): Economic policy, Global Financial Crisis, 2008-2009, Economic conditions
