The Causes and Effects of the Subprime Mortgage Crisis The subprime mortgage crisis struck the United States economy like an earthquake in 2008 with the aftershocks reverberating across the globe. Many people including bankers, Wall Street brokers, members of the government, and private citizens failed to recognize the financial tremors as warning signs that foretold the coming of the crisis. The tremors had been building since about 2005, but many people in the banking, credit rating, and mortgage industries chose to ignore the warning signs. During the early 2000’s people who wanted mortgages that they could never afford to repay also abandoned all logic and took out enormous loans. The crisis started in the United States, but has now...The end:
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