Subprime mortgage crisis: Difference between revisions
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==Monetary policy== | ==Monetary policy== | ||
<ref>[http://www.stanford.edu/~johntayl/Housing%20and%20Monetary%20Policy--Taylor--Jackson%20Hole%202007.pdf John Taylor ''Housing and Monetary Policy'' Stanford University September 2007]</ref> | |||
==The "wall of money"== | ==The "wall of money"== | ||
Revision as of 15:58, 11 October 2008
The subprime mortgages crisis arose from defaults on the United States mortgage markets, and led to the global 2007-2008 financial crisis.
Glossary
For definitions of the terms shown in italics in this article, please see the glossary.
Timeline
The Timeline subpage lists the major events of the crisis with links to contemporary news reports.
The Crisis
Unexpected defaults by the holders of some mortgages led to general uncertainty about the value of mortgage-backed securities. Operators in the financial markets became reluctant to lend money on the security of such assets, placing holders of those securities in difficulties. There developed a loss of confidence in organisations that were suspected of being vulnerable to the falling value of their holdings of mortgage-related securities, and that created a widespread financial crisis.
Among the factors that are considered to have contributed to the development of the crisis are the conduct of monetary policy, the inflow of funds from abroad, the creation of new ways of financing mortgages, the policies adopted by providers of mortgage finance, and the consequent behaviour of the housing markets.