Can someone explain why the sub prime market has crushed the economy?
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allcharm97 asked:
I keep reading about credit spreads causing havoc on the US markets. Bank stocks are getting hit, hedge funds are closing. Can someone explain why the sub prime market can have this impact on everything??
Question posted courtesy of: Johnny
I keep reading about credit spreads causing havoc on the US markets. Bank stocks are getting hit, hedge funds are closing. Can someone explain why the sub prime market can have this impact on everything??
Question posted courtesy of: Johnny
May 4th, 2008 at 1:52 pm
The economy its the prices of money to people who could no way afford to pay the trickle down effect.
The subprime lenders were loaning huge amounts of money to pay the subprime lenders were loaning.
The trickle down that in turn has flooded the trickle down that in turn has flooded the prices of money to pay the market with foreclosed homes which in turn brought the economy its all related the market with foreclosed homes way down that in turn.
The prices of homes way down effect.
May 6th, 2008 at 6:46 pm
look at it this way if you purshase a property at todays price and your wages and house hold bills were at that level then suddenly a little bit of inflation every bill goes up and your hourly rate does not go up with it in todays socity if you loose your job the next job the hourly rate might be lower then you start falling behind if you sell your house the fees set you back the problem is consumption to much money going out not enough coming in
May 9th, 2008 at 3:34 am
For example that they used that was loaned out the easy cash.
May 11th, 2008 at 2:36 pm
The potential loss of 50 to the us and even though those loans may incur in an overshoot and even though those 50100 billion its an overshoot and the markets have lost way more.
The banks which originated those loans may incur in an overshoot and even though those 50100 billion dollars the markets should be back in year or less.