Quote:
Originally Posted by cridgit001
@Kirakira-Can you please explain how this is the US's fault?
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Subprime loans rings a bell. The US government actively encouraged high risk lending, i.e. leading $$$ to people to buy houses when they can barely afford to pay the repayment. When the interest rate go up, and housing prices stunted, a lot of these people were forced to default, and it pretty much went down hill from there. All of a sudden, the banks are finding that the houses they lend $300,000 have as collateral suddenly is only worth half as much even after they call the debt collector, and things just snow balled from there. This sort of stuff happens but not to this scale.
The other one is wild speculation of oil and other resources. $150 a barrel... geez.
Anyway do some research on the current financial crisis and everything will be clear.