Zusammenfassung der Ressource
Causes of
Subprime Crisis
- 1
- Dot-com Bubble Burst
(2001)
- US Federal Reserve
cuts interest rates
- 5
- Subprime
loans failed
(2007)
- Asset-backed
securities
- Liquidity Crisis
- 2
- Fannie Mae and
Freddie Mac
(2002)
- Purchased large
amount of
subprime mortgage
{Mortgage Loan}
- Investors put money
into real estate
- Home prices
appreciation begin
- Demand for
housing increased
{Mortgage Loan}
- Housing
prices drove
up
- 3
- Leveraging
restrictions lifted
(2004)
- Finanacial
Institutions
- Issued huge
amounts
- Mortgage-backed securities
(Mortgage Loan)
- 4
- Mortgage loan
terms changed
(2006)
- Interest Rates Rose
- Families couldn't
afford homes
- Houses went into foreclosure
{Mortgage Loan}
- Excess Supply of
homes
{Foreclosure}
- Home prices
declined rapidly
- 6
- 2008
- Global stock
markets fell
{Liquidity Crisis}
- People cannot
repay loans
{Liquidity Crisis}
- Foreclosures
increased
- More homes
on sale
- Lehman Brothers
{Mortgage Crisis}
- Filed bankruptcy
protection
- Recession