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-BARSIC- [3]
3 years ago
15

Pls help asap .. what is the cause and effect of the Subprime mortgage crisis of 2008?

History
1 answer:
bonufazy [111]3 years ago
8 0

Answer:

Hedge funds, banks, and insurance companies caused the subprime mortgage crisis. Hedge funds and banks created mortgage-backed securities. ... When the Federal Reserve raised the federal funds rate, it sent adjustable mortgage interest rates skyrocketing. As a result, home prices plummeted, and borrowers defaulted.

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