Events

Subprime Mortgage Crisis

Subprime Mortgage Crisis

Full Name
Subprime Mortgage Crisis
Event Type
Start Date
2007
End Date
2010

The subprime mortgage crisis transpired when banks dealt too many mortgages to sustain the demand for mortgage-backed securities offered through the secondary market. When home prices declined in 2006, it set off defaults. The risk extended into pension funds, mutual funds, and corporations who control these derivatives. The resulting 2007 banking crisis and the 2008 financial crisis created the worst recession since the Great Depression.