Sub Prime Crisis and Recession.

Sub Prime Crisis :- The dictionary meaning of Prime is splendid. We alone know that the use of hit man before such(prenominal) adjective means reducing the strength of the above stipulation . A year ago the major banks (Lehman Bros, AIG, Merylinch, Citi group, etc.) in regular army were having good liquidity. None had dreamed ever that these financial institutions, who be known for their liquidity, strength & corporate transp bency in creation 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 & ball 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, whitlow record, etc.) which is accessible through internet. People in USA are categorized in three categories on the basis of their scotch 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 position prime category. C category is known as submarine sandwich prime category. All the above cos.

, firms & many other minor(ip) & medium firms were always flush of funds & found no qualitative people to whom they could lend or other choice markets where they could invest without major risk. They studied that the mortgage adds were always undecomposed & had small to medium risk due to the possibility of retrieval through sale of land or houses. The reason being 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 raving mad but fixed assets (Land & Building) to be created out of the loan summate or kept as collateral security shall baffle 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, stage it on our website: Orderessay

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