Upside Down Mortgage

Subprime Credit Crisis Explained

Question: What is subprime mortgage?why didn't anyone in us didn't know about the problem in subprime when it started?

If subprime mortgage's lendin money to people of low credit ratings then why didn't de american government know about impact when it was introduced?could someone explain to me about economic crisis?

Answer: A sub-prime mortgage is a mortgage that has been granted to someone who can't afford what they are buying.

Some economists started calling attention to the potential of a sub-prime melt down over two years ago -- but they were ignored.

The government's policy since the end of World War II has been to promote home ownership. Congress and the last several Presidents have chosen to ignore the fact that making loans to people who can't pay them is eventually going to cause major problems. The politicians pressured banks to make loans to people who couldn't afford them because it was politically correct to do so.

Although they had/have noble goals (which I do agree with) their implementation has left a lot to be desired.

Hope this helps
Jerry-the-bookkeeper

SubPrime Credit Crisis Explained

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