What Is The Sub-Prime Crisis?

What is the subprime crisis? How does it cause economic confusion? The current turmoil in the global financial market has caused more confusion over the entire two weeks than the whole world economic history. There are many reasons leading the world to the door of the financial crisis, but the main cause of this financial disaster is said to be "subprime loan". So what is this subprime loan? Why does it cause a global panic? If it relates to the US housing sector, why does it affect India and other markets?

In order to understand the reasons for the subprime mortgage crisis, following the collapse of the Internet bubble in 2001, Federal Reserve Alan Greenspan caused a boom in the real estate market and lowered the interest rate to 1% to break out of recession please remember. These low interest rates introduced a large amount of surplus funds into the economy, causing a real estate boom. In addition, the Gram Ritchie Billie bill implemented by the Clinton administration in 1999 has created many new large banks with many branch banks, including Citigroup, Bank of America, JP Morgan Chase and others. We will buy and sell shares and lead the company merger. As currency growth sharply increases, banks are now trying to find more money to increase their income. Their answer is subprime loans.

We are at the forefront of the new industrial revolution, but on this cliff it is important to remember the historical reproduction, first of all after the tragedy and the farm. The US subprime mortgage crisis that began in 2007 rapidly spread to the international currency crisis, billions of dollars in global remedies, and ultimately the Great Depression and the European debt crisis. In parallel with these failures, there is the creation of a new type of currency that attempts to solve problems that stood up from the tragedy ash and had a major impact on the financial community. In the next decade or so, the encryption currency should not face the "too big to fail" problem faced by the traditional financial industry.

This is because the crisis of student loans is quite different from the crisis of subprime mortgage. The subprime mortgage crisis was a typical example of a sharp devaluation of 778 points a day at the end of September 2008 at the Dow Jones Industrial Company and fell more than 1,000 points in the subsequent 16 days. This is a violent financial panic and is reflected in the peak period of the above "sub loan" search chart. In the case of subprime mortgage crisis, the student loan crisis is long-term. When bankruptcy floods the market, inevitable debts are now flooding the market.