After years of massive credit expansion, the debt industry snapped, taking down major Wall Street figures and hitting corporations with initial loss estimates in the tens of billions. Investors from Wall St to Main St. were left wondering how it all happened. In the prior six years interest rates were historically low and the housing market was booming. Jeanne Yurman report that the home mortgage industry doled out loans to subprime or more risky borrowers. Home loan programs with loose terms like zero down home mortgages or incredibly low teaser rates.
In 2009 the Subprime mortgage crisis rages on, but now it has caused a housing, credit and foreclosure crisis. Hopefully we will learn something from this and lend money more responsibly.
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