custom essays on global financial stability report (1 essays)

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...