From this article I learned that we are in real danger of recession. Since the sub prime mortgage industry died, it is causing the government to scramble, lowering interest rates, in order to try to prevent the economy to crash. It is not a surprise to me that the government was warned about this before; it was a very predictable thing. These lenders were giving loans to people who didn’t have to prove that they could or would pay them back. So since all of these houses were bought with these sub prime mortgages within 5 years all the people have voided their mortgages by not being able to pay the lenders causing foreclosure. And when after repeatedly being told that the Fed needed to aid and regulate the sub prime lenders, it was to late. Within four months of new regulations coming down having to do with sub prime mortgages, the entire industry collapsed sending the economy into panic. This article represents the defending argument on the topic of what to do about the recent jump in sub prime mortgages being foreclosed. This person says that the ratio of people
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Subprime mortgage crisis, sub prime Mortgage, Fed, Subprime lending, Sub Prime Mortgages