From Subprime Mortgages to Global Crisis
In Chapter 1, we learned about the “kerosene-soaked rag”, risky subprime mortgages bundled together and sold as supposedly safe investments. When interest rates rose and homeowners began defaulting, the spark became a global financial fire.
Chapter 2 explores the Lehman Brothers collapse, the AIG bailout and how these events caused a chain reaction that froze the global economy. Understanding this is key to learning about systemic risk, where the failure of one part of a system can bring the whole system down.
Subscribe to get access
Read more of this content when you subscribe today.
Leave a reply to The Scorched Earth: Foreclosures, Unemployment and the Human Cost of the 2008 Financial Crisis – Apollo Scholars Cancel reply