Reply to thread

Message

<blockquote data-quote="fishtm2001" data-source="post: 4727937" data-attributes="member: 54375">&quot;Hedge funds, banks, and insurance companies caused the <a href="https://www.thebalance.com/subprime-mortgage-crisis-effect-and-timeline-3305745" target="_blank">subprime mortgage crisis</a>. Hedge funds and banks created mortgage-backed securities. The insurance companies covered them with credit default swaps. Demand for mortgages led to an asset bubble in housing. When the Federal Reserve raised the federal funds rate, it sent adjustable mortgage <a href="https://www.thebalance.com/how-are-interest-rates-determined-3306110" target="_blank">interest rates</a> skyrocketing. As a result, home prices plummeted, and borrowers defaulted. Derivatives spread the risk into every corner of the globe. That caused the 2007 banking crisis, <a href="https://www.thebalance.com/what-caused-2008-global-financial-crisis-3306176" target="_blank">the 2008 financial crisis</a>, and the Great Recession. It created the worst recession since the Great Depression. &quot;The Balance</blockquote>

[QUOTE="fishtm2001, post: 4727937, member: 54375"] "Hedge funds, banks, and insurance companies caused the [URL='https://www.thebalance.com/subprime-mortgage-crisis-effect-and-timeline-3305745']subprime mortgage crisis[/URL]. Hedge funds and banks created mortgage-backed securities. The insurance companies covered them with credit default swaps. Demand for mortgages led to an asset bubble in housing. When the Federal Reserve raised the federal funds rate, it sent adjustable mortgage [URL='https://www.thebalance.com/how-are-interest-rates-determined-3306110']interest rates[/URL] skyrocketing. As a result, home prices plummeted, and borrowers defaulted. Derivatives spread the risk into every corner of the globe. That caused the 2007 banking crisis, [URL='https://www.thebalance.com/what-caused-2008-global-financial-crisis-3306176']the 2008 financial crisis[/URL], and the Great Recession. It created the worst recession since the Great Depression. " The Balance [/QUOTE]

Verification