Sub Prime Crisis and Recession.

Sub Prime Crisis :- The dictionary meaning of Prime is gauzy. We tout ensemble know that the use of cuneus before much(prenominal) adjective means reducing the strength of the above b ordinance . A year ago the major banks (Lehman Bros, AIG, Merylinch, Citi group, etc.) in ground forces were having good liquidity. None had dreamed ever that these financial institutions, who argon known for their liquidity, strength & corporate transp arency in ground over, could be in financial troubles & American Govt. has to contribute billions & trillions of US dollars to save the jobs, reputation of USA & entire markets of USA & man over, which are directly or indirectly depend on USA to survive or flourish. Each mortal in USA has a social security number which contains all the relevant information of that mortal ( like name, address, contact number, vile record, etc.) which is accessible through internet. People in USA are categorized in three categories on the basis of their sparing condition viz A, B and C which is also available in the social security database. A category is known as prime category. B category is known as warmheartedness prime category. C category is known as torpedo prime category. All the above cos.

, firms & many other micro & medium firms were always flush of funds & found no qualitative people to whom they could lend or other pick markets where they could invest without major risk. They studied that the mortgage gives were always off the hook(predicate) & had small to medium risk due to the possibility of recuperation through sale of land or houses. The reason world the prices of these assets were always increasing in the past. They decided to provide loans to sub prime category people with a theory that the borrower was untamed but fixed assets (Land & Building) to be created out of the loan bill or kept as collateral security shall experience higher amount than the principal & interest. All these major firms provided loan facilities to everyone without looking their... If you want to get a full essay, order it on our website: Orderessay

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