In the United States, loans are a very common phenomenon, from houses to cars, from credit cards to telephone bills, loans are everywhere. Locals rarely buy a house in full, usually with long-term loans. But we also know that unemployment and re-employment are very common phenomena here. How can these people with unstable income or no income buy a house? Because their credit ratings are not up to standard, they are defined as subprime lenders, referred to as subprime lenders.
By the end of 2006, the American real estate, which has enjoyed a beautiful scenery for five years, finally fell from its peak, and this food chain finally began to break. Because of the falling house prices, the time limit for preferential loan interest rates has come. First, ordinary people can't repay their loans, and then the A Niu loan company closed down, and hedge funds suffered huge losses, which in turn implicated insurance companies and loan banks. Citigroup and Morgan issued huge loss reports one after another, at the same time, the major investment banks that invested in hedge funds also suffered losses. Then the stock market plummeted, people generally lost money, and the number of people unable to repay their mortgages continued to increase ... Finally, the subprime mortgage crisis broke out in the United States.
It has little influence on China and the people.