Long term effect and recession After incurring huge losses in the sub prime mortgage lending section, Government has bailed out AIG and the bigUSbanks with the tax payer’s money. Merrill Lynch was sold to Bank of America at throw away price of USD 50 million and Lehman Brothers’ collapse wiping out whopping USD 700 billion […]Continue Reading... No Comments.
Start of the Crisis?? Everything was going on very smooth and everyone in the system was making huge amount of money. But suddenly in 2007, the housing market showed the sign of cooling down in price due to bubble burst and the continuous price increase halted. With the interest rate got increased because of high […]Continue Reading... No Comments.
Big Players Now we will check how all the big players came into the picture and took so much exposure in the market. As the housing market price was continuously increasing and lots of people have started to take the benefit out of it, all the big banks and investment banks have also developed new […]Continue Reading... No Comments.
Preface Sub Prime crisis has shocked the whole financial world during financial world 2008-09 and led to one of the worst financial crisis in the history. Due to its severe impact, some big companies like Lehman Brothers and several small companies went into bankruptcy and government had to bail out some big ones like AIG, […]Continue Reading... No Comments.