subprime mortgage crisis
2008 lending catastrophe
The subprime mortgage crisis was the financial collapse of 2007–2008 triggered by widespread defaults on high-risk home loans.
Banks had extended mortgages to borrowers with poor credit (subprime borrowers), then bundled these loans into securities sold to investors.
When housing prices fell and borrowers couldn't repay, the resulting cascade brought down major financial institutions and sparked a global recession.
- credit crunchSevere reduction in lending
- delinquencyCriminal or neglectful behavior
- credit default swapsContracts insuring against debt failure
- bad debtUnrecoverable money owed
- foreclosureLender seizes mortgaged property
default · systemic risk · bailout · TARP · predatory lending · debt · liquidation · regulatory oversight · recession · adjustable-rate mortgages · financial contagion · bankruptcy · economic downturn · bank run · asset bubbles · economic collapse · AIG · Lehman Brothers
subprime mortgage crisiseconomic boom
Sustained period of growth
bull market · economic expansion · Roaring Twenties · dot-com boom · full employment
subprime mortgage crisisnatural disaster
Catastrophic environmental event
act of God · earthquake · hurricane · pandemic · volcanic eruption
subprime mortgage crisishousing boom
Rapid residential construction increase
real estate bubble · housing affordability · seller's market
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