The crisis happened from the big banks and investors loaning money to homeowners that couldn't pay back. They would also have high interest rates, up to 10%. That caused the money loaned to be risky, the investors would sell to other investors to make money off of peoples loans. When it was time to re-up, people couldn't pay back so that would hit their creditt hard!! Soon enough it was happening to everyone because of the outrageous loans and investing.
http://www.crisisofcredit.com/
No comments:
Post a Comment