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The economic crisis in the United States of America

The economic crisis in the United States of America -...

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Academic writing Seonho Lee The economic crisis in the United States of America The U.S has been getting through difficult situations over the past centuries such as the great depression and world wars; although those crisises were primarily hard to solve, they were completely overcome by the U.S government. The U.S has been struggling with the economic crisis since the subprime mortgage 1 turned out to be a bubble. The subprime mortgage basically caused the continuing financial disaster not only in the U.S, but all over the world. The main cause of the economic crisis is that the subprime mortgage emerged as a bubble. The subprime mortgage crisis is an ongoing financial crisis triggered by a dramatic rise in mortgage delinquencies and foreclosures in the United States, with major adverse consequences for banks and financial markets around the globe. Approximately 80% of U.S. mortgages issued in recent years to subprime borrowers were adjustable-rate mortgages 2 . When U.S. house prices began to decline in 2006-07, refinancing became more difficult and as adjustable-rate mortgages began to reset at higher rates, mortgage delinquencies soared.
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