O
on3via
Guest
My understanding is the sub prime mortgage market collapsed as people reached a point where they could no longer afford the repayments after the low introductory interest rates. This lead to defaults and banks and investors who invested in sub prime mortgage securities started losing money.
How does it affect everyone else if it's only retail banks and selected investors bleeding equity?
As in why when the sub prime mortgage market collapses, there becomes a global economic crisis effectively affecting every industry?
How does it affect everyone else if it's only retail banks and selected investors bleeding equity?
As in why when the sub prime mortgage market collapses, there becomes a global economic crisis effectively affecting every industry?