0 used to describe the practice of lending money, especially to buy a house, to people who may not be able to pay it back: --
It then began to rise steadily after 2000, then jumped in 2008 and 2009 due to the subprime mortgage crisis.
These firms needed a cash infusion due to losses resulting from mismanagement and the subprime mortgage crisis.
This leverage enabled investment banks to substantially increase the level of debt they were taking on, fueling the growth in mortgage-backed securities supporting subprime mortgages.
It was characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages.
The third point is that on the basis of the subprime crisis, we have learned that it is necessary to distinguish between several types of loan.
How did the subprime problem start?
The subprime mortgage crisis has triggered a deflationary spiral which is not only ravaging the financial system, having wiped out more than 60% of the global value of shares.
The proposals announced are even frequently at odds with what ought to be done to prevent a repeat of the subprime financial crisis of autumn 2008.
