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The global economic meltdown was begun with the collapse of the housing market. Lenders were lending money to buyers who weren't very well qualified. Eventually the housing market collapsed and the value of real estate plummeted, leaving financial institutions holding large loans on properties with less worth. The financial difficulties of the financial institutions had an impact across all economic sectors.
Wiki User
∙ 9y ago
Wiki User
∙ 15y agoThe global economic turn down is because of the Subprime Economic Crisis
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
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.
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today
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why do glacier melt in himalaya
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