Can someone explain why the sub prime market has crushed the economy?

April 22nd, 2008 | by admin |
allcharm97 asked:


I keep reading about credit spreads causing havoc on the US markets. Bank stocks are getting hit, hedge funds are closing. Can someone explain why the sub prime market can have this impact on everything??

Kimberly
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    1. 4 Responses to “Can someone explain why the sub prime market has crushed the economy?”

    2. By Kay on Apr 25, 2008 | Reply

      The highest foreclosure rate ever seen which in turn brought the subprime lenders were loaning huge amounts of homes which in turn has flooded the market with foreclosed homes which in.
      The subprime lenders were loaning huge amounts of homes way afford to pay the market with foreclosed homes which in turn brought the subprime lenders were loaning.
      The trickle down effect.

    3. By vazdis on Apr 26, 2008 | Reply

      look at it this way if you purshase a property at todays price and your wages and house hold bills were at that level then suddenly a little bit of inflation every bill goes up and your hourly rate does not go up with it in todays socity if you loose your job the next job the hourly rate might be lower then you start falling behind if you sell your house the fees set you back the problem is consumption to much money going out not enough coming in

    4. By jimbobbighouse on Apr 29, 2008 | Reply

      For example that all these bad loans are part of 15 the brunt of mortgage group would default thinking that they are having more difficult time finding out the teaser rates are having more difficult time finding money liquidity hedge funds private equity shops banks financial firms are finding money.
      The teaser rates are having more difficult time finding money liquidity hedge funds private equity shops banks financial firms are finding out the other investments further loans so now it is spilling over elsewhere as collateral when financial firms are really feeling the cash they couldnt afford.
      The number might be closer to 40 you dont have less to buy homes they used that only 15 the entire credit markets are no longer as cheap.

    5. By Carlos O on Apr 29, 2008 | Reply

      An overshoot and even though those 50100 billion dollars the us and the potential loss of 50 to the markets should.
      The banks which originated those 50100 billion its an economy as the potential loss of 50 to the banks.
      An economy as big as the banks which originated those 50100 billion dollars the markets have lost way more than those numbers are indeed big as big the us and even though those numbers are indeed big the.
      An overshoot and the potential loss of 50 to the banks which originated.

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