Large high risk loans predicated on rising house prices

People had been taking out loans that were dangerously disproportionate to their incomes to buy houses in the expectation that a continuing upward trend in house prices would more than justify the costs and risks of the loans.

RELATED ARTICLESExplain
The Global Financial Crisis
Immediate triggers of the financial crisis?
Bubble in US house prices collapsed
Large high risk loans predicated on rising house prices
Household debt service ratio rose steeply
Personal savings rate evaporated
Demographic changes as baby boomers move to retirement
Mortgage equity withdrawls no longer self sustainable
Vicious circle once the collapse gets underway
Graph of this discussion
Enter the title of your article


Enter a short (max 500 characters) summation of your article
Enter the main body of your article
Lock
+Comments (0)
+Citations (0)
+About
Enter comment

Select article text to quote
welcome text

First name   Last name 

Email

Skip