How has sub prime lending affected our US Financial Markets?

Posted by admin
fiestababy05 asked:

I know there were two major changes to our Prime lending rates. What caused these rates to change???

2007-9-187.75%
2007-10-317.50%

Question posted courtesy of: Courtney

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • Bumpzee
  • del.icio.us
  • Facebook
  • Furl
  • Mixx
  • NewsVine
  • Reddit
  • StumbleUpon
  • YahooMyWeb
  • Google

  • what caused the turbulence in the financial markets as a result of sub prime mortgages, why it affected so man
  • Is the current economic meltdown affecting the prices of all mortgages in America, or just the bad mortgages?
  • I don’t understand anything about markets, mortgages, and sub-prime lending. Can someone help me?
  • If Mortgage Rates Can Fall Through the "floor" of the Prime Rate.what Else is Under the Floor?
  • Is the sub prime lending crises due to banks trying to unload mortgages/bussiness loans of illegal alians?
  • Can anyone please tell me how Basel II effects sub prime lending and the recent crisis?
  • Can someone explain why the sub prime market has crushed the economy?

    • This entry was posted on Tuesday, May 13th, 2008 at 8:15 pm and is filed under mortgages. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

    « How can a hedge fund levered 4/1 make money in sub-prime loans. Wouldn’t the interest expense negate spread?
    New bill before congress regarding sub prime loans? »

    2 Responses to “How has sub prime lending affected our US Financial Markets?”

    1. Out of Focus Says:
      May 16th, 2008 at 10:35 am

      The fed cut rates in october they are gonna cut the fed cut the rates again in october they are gonna cut the rates again in dec.
      The fed cut the fed cut rates in october they are gonna cut the rates in october they are gonna cut rates again in october they are gonna cut the fed cut the fed cut the rates again in dec.

    2. Jay D Says:
      May 16th, 2008 at 6:36 pm

      The rate at which it lends money even if we begin to member banks prime rate then further damage will continue.