ipl-logo

The Worst Stock Market Crash In 2008 Essay

163 Words1 Pages
In 2007, we experienced the worst housing crash in U.S. history. After the stock market crashed in 2000, money was being invested in the housing market instead of the stock market. Instead of banks keeping loans on their own books, they began to resell them to investors on the secondary market in the form of securities. By passing the risk to investors, there was bad underwriting, faulty appraisals, more aggressive financing, and less oversight, which in turn, led to a lot of bad loans being made (Robertson, n.d). Subprime mortgages rates rose from 8% (or lower) to approximately 20% from 2004-2006, with even higher rates in some parts of the country (Subprime crisis, n.d). With the rise in rates, refinancing became difficult, mortgages became
Open Document