Why is the market reacting so negatively to the sub-prime lending issues?
Monday, May 5th, 2008Louis G asked:
sub-prime lenders give loans to people with bad credit. It’s a small segment of the market. The news is coming out that people are defaulting on these loans.. Why is this suprising? it’s a sub prime market. Of course risky loans to people with bad credit are going to be defaulted on. The market is plummeting on this news as if it is a suprise somehow.
What gives?
Question posted courtesy of: Bernice
sub-prime lenders give loans to people with bad credit. It’s a small segment of the market. The news is coming out that people are defaulting on these loans.. Why is this suprising? it’s a sub prime market. Of course risky loans to people with bad credit are going to be defaulted on. The market is plummeting on this news as if it is a suprise somehow.
What gives?
Question posted courtesy of: Bernice
