global financial stability report custom essays, term papers, research papers (1 essays)

Us Sub-prme Crises

1641 words/6 pages

The economic boom that occurred after 2000 increased real income among the United States citizens and for that matter given the assumption of the fixed money supply , this lead to the increase in the interest rates which affected the borrowing because later the money value had increased (Ferusion and Phillip 2008 . The increase in the interests rates which followed after the economic boom , made it unaffordable for the Sub prime borrowers to borrow for financing the loans that they had...