![]() Two proximate causes were the rise in subprime lending and the increase in housing speculation. There were many causes of the crisis, with commentators assigning different levels of blame to financial institutions, regulators, credit agencies, government housing policies, and consumers, among others. While elements of the crisis first became more visible during 2007, several major financial institutions collapsed in September 2008, with significant disruption in the flow of credit to businesses and consumers and the onset of a severe global recession. better returns) than government securities, along with attractive risk ratings from rating agencies. The housing bubble preceding the crisis was financed with mortgage-backed securities (MBSes) and collateralized debt obligations (CDOs), which initially offered higher interest rates (i.e. Spending reductions were more significant in areas with a combination of high household debt and larger housing price declines. Declines in residential investment preceded the Great Recession and were followed by reductions in household spending and then business investment. It was triggered by a large decline in US home prices after the collapse of a housing bubble, leading to mortgage delinquencies, foreclosures, and the devaluation of housing-related securities. The United States subprime mortgage crisis was a multinational financial crisis that occurred between 20 that contributed to the 2007–2008 global financial crisis. ![]()
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