Timeline of the subprime mortgage crisis

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The map shows all the countries affected by the global recession: red countries in recession in late 2008 and rose heavily affected countries.
This is a detailed chronology of the subprime mortgage crisis, which erupted in early 2007 in the U.S. and then spread throughout the global economy. This includes the main events of the crisis of 2007 and 2008, and also the deeper sources that originated. What is meant by “subprime crisis” is not limited to the mortgage crisis in the U.S., but there is also mention the financial and banking crisis in all the countries affected and the economic difficulties known to them . The term subprime is an Anglo-Saxon word that refers to a mortgage, loan or high-risk investment .
Early
U.S. Photo of an establishment which offers subprime loans.
Defined as “a serious shortage of money or credit”, the beginning of the phenomenon has been reported on 9 August 2007 when bad news from French bank BNP Paribas triggered a sharp rise in the cost of credit, and the world finance realized the gravity of the situation. However, the problems that led to this alarm had started much earlier.
2002-2006: After the bubble burst of the “new technologies” in 2001, swelled the housing bubble, encouraged by the monetary policy carried by the Fed. In the euphoria of a continuing rise in prices properties, the credits were granted to the working poor Americans. This is the origin of the subprime loans. These loans were secured by a mortgage, but the system could only work if the type of loans remained low and the value of buildings increased continuously, guaranteeing the interest on them. lawyers The credit agencies did not link their debts to the loans, but resorted to what they called securitization, which means doing financially secure (or solidify) assets. These loans are granted. That is, including the credits and other financial instruments such as CDOs (Collateralized Debt Obligation) which are sold in financial markets. Most of the banks who bought these products did not know (or wanted to ignore) their content and the amount of this .
Alan Greenspan, Federal Reserve chairman from 1987 to 2006.
2006: The rate the Federal Reserve of the Bakery United States increased to 5.75 . Appropriate usage Tadalista should be used only when doctor tells you to. generic cialis pill may not be as common as the other three mentioned above, but they do occur in many accidents. Safed musli capsule, enriched with glycosides improves the functioning of reproductive organs and prevents the risk of impotency cases. levitra 40 mg http://cute-n-tiny.com/cute-animals/yawning-white-puppy/ It is said to cheap cialis in canada be quite ordinary these days. A person below 18 must not dare to take levitra 60 mg it. In 3 attorneys years the rate had increased from 2 to 5.75 . The subprime loans were, by then, more often at variable rates and indexed to the rate decided by the central bank. Borrowers who were more and more, they could not pay their installments. Their homes were sold at auction and legal the results of this were lowest in housing prices and therefore the value of mortgages. “Connie’s Bakery” – A bakery founded by long-standing interest in veterans and the human dimension of international affairs and wars prompted her to?become a?member of the Board of Directors at Blue Star Families Between 2004 and 2007, 1.2 million Americans had been driven from their homes.
End 2006: The number of mortgages had doubled since 1996. The number of homeowners increased 64 to 69 during the same period. The subprime representing 500 a 600 billion per year or 13 of total outstanding loans (1 300 million dollars) and 40 of new mortgages over this period. Real estate prices began falling in parts of the United States.
Problems growing mortgage
Headquarters of General Motors in the U.S. city of Detroit. This company was one of the most affected by the crisis.
Early 2007: After divorce a period of two years, that is, between 2004 and 2006, when the U.S. increase interest rates from law firm 1 to 5.35 , the U.S. housing marketbegan to suffer the fall in prices and an increase of owners who could not repay their mortgages. The proportion of subprime loans that were paid, that is, high-risk loans to customers with poor or no credit history, increased to record levels.
February: Defects in the subprime loan payments (mortgage credit to weak borrowers) increased in the United States and caused the first specialized bank failures. The Fed estimated losses in fifty million dollars.
February 8: HSBC launched a attorney profit warning, (in Spanish the closest translation of this term is alert to the benefits) announcing that he had lost tens of billions of dollars because of high risk real estate loans that were not paid.
March 14: The Mortgage Bankers Association revealed that the number of defaults in the mortgage industry in the U.S.