Causes of the U.S. economic crisis

The definition of the U.S. subprime mortgage crisis is the crisis of subprime mortgage loans in the U.S. real estate market. Subprime mortgage loans are compared to mortgage loans with better credit conditions. Mortgage lenders do not have (or lack sufficient) proof of income/repayment ability, or have other heavy liabilities, so their credit conditions are "lower" "subprime" mortgage loans for this type of real estate are called subprime mortgage loans.

Compared with the more favorable interest rates and repayment options available to mortgage lenders with better credit standing, subprime mortgage lenders are usually forced to pay higher interest rates and repayment options. interest rates and adhere to stricter repayment terms. This is a very natural question, but due to the impact of loose credit, active financial innovation, and rising real estate and securities market prices in the United States in the past 6 or 7 years, it has not been truly implemented. In this way, the repayment risk of subprime mortgage loans changes from potential to reality. In this process, some financial institutions in the United States, for their own benefit, condoned the excessive expansion of subprime mortgages and the related loan packaging and bondization scale, which led to the expansion of the scale of subprime mortgage loan defaults that occurred under certain conditions. the extent of the crisis.