The subprime mortgage crisis is that some banks or financial institutions package the loan vouchers of people who borrow money to buy a house or a car into financial derivatives and then buy them for ordinary investors.
Moreover, many products they buy are subprime loans, that is, loans from people with bad credit or poor repayment ability. These people have poor risk resistance. If they can't repay the money normally, investors in his line will suffer.
What is the subprime mortgage crisis? First of all, we should know what subprime mortgage is. Sub-prime loans are relative to high-quality loans, and sub-prime loans refer to sub-prime mortgages. It is a loan that does not meet the loan standard at all according to the general bank mortgage loan standard.
Specifically, it is the housing mortgage loan provided by banks to other individuals with poor credit status, no proof of income and repayment ability, and heavy debts.
There are two reasons for sub-prime loans: first, there are fewer and fewer high-quality loans from banks, and banks can only lend to sub-prime customers; Second, the interest rate of subprime mortgage is higher, and high quality and low price have always been commercial principles.
In the worst period of subprime mortgage, the bank's housing mortgage loan ratio is 120%, and the other 20% is used for housing decoration.
The subprime mortgage crisis is also called the subprime mortgage crisis. People pay attention to the subprime mortgage crisis because of the financial crisis in 2008, which was caused by the subprime mortgage crisis in the United States.
This is an economic storm triggered by the bankruptcy of subprime lending institutions, the forced closure of investment funds and the violent shock of the stock market.
The direct cause of the subprime mortgage crisis in the United States is the rising interest rate of American loans and the cooling of the real estate market.
The rise in interest rates has led to an increase in the repayment pressure of some lenders with poor qualifications, leading to a large number of defaults; The cooling of the real estate market makes it difficult for lenders to rent or sell their houses. Even if it is sold, it is not enough to repay the loan principal and interest, or even the loan principal. The result was a chain reaction, such as the loss of bank loans, which eventually led to the subprime mortgage crisis.