Some of the things that lead up to the current situation are sub-prime morgages, credit default swaps, and credit insurance contracts. Sub-prime morgages are morgages that are usually given out to borrowers with low credit ratings. People that borrow with a credit rating lower than 600 will usually be stuck with the sub-prime morgage and higher intrest rates.
http://www.investopedia.com/terms/s/subprime_mortgage.asp
http://en.wikipedia.org/wiki/Credit_default_swap
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment