Sub-Prime+Credit+Crisis

   **Sub-Prime Credit Crisis    ** Often associated with the ongoing sub-prime mortgage crisis, the sub-prime credit crisis is a financial disaster described by contracted liquidity in international credit markets triggered by companies, banks and investment firms who invested in sub-prime credit.  **Sub-prime:** Credit with higher risk characteristics, such as bankruptcy, or collection accounts.
 * DEFINITIONS: **
 * Credit Crunch:** A sudden reduction in the general availability of loans (credit), or a sudden increase in the cost of obtaining loans from banks.

**// Where did the 'Subprime Credit Crisis' come from? //**  There are many intricate and reoccurring reasons that the sub prime market collapsed. One known factor is the sustained period of inappropriate lending which led to losses for lending institutions. Essentially, the economy's strength at the time allowed for too much money to be lent out to inappropriate reciprocates who could not pay their debts back. This can be attributed to a number of factors including: homeowners unable to pay their mortgages, over-spending, poor judgment by borrowers, over-building, risky mortgage productions and so on. Following this, institutions normally reduce the availability of credit by increasing interest rates therefore drawing money out of the economy and motivating a downward cycle. **WHAT THE EXPERT SAYS:**  [|Visit Errol D'Souza's Blog]

// **Need An Example?** // Here is a graph of US HOUSE PRICE TRENDS in 2008:

 //** When did it occur/begin? **// The most commonly referred to "Credit Crisis" is the ongoing one based primarily in the United States. There have been many other cases of financial crisis in other places of the world but the mortgage crisis in the United States has been one of the largest. It began in the tail-end years of the 20th century but became most apparent in the year of 2007. This started with the burst of the "Housing Bubble" beginning in 2005-2006.

//** What are determinants in deciding which people qualify for market interest rates? **// Things like income level, size of down payment, credit history, employment and many more. As you can imagine, lending on this scale would lead to... "The value of U.S. sub prime mortgages was estimated at $1.3 trillion as of March 2007 with over 7.5 million subprime mortgages outstanding"
 * //[//**[|**//http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#cite_note-9//**]//**]**//

//** >     //** Chart Of Dow Jones Collapse: **//
 * // Further explanation:
 * //  Statistics/Important Dates:   //**
 * <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"> On July 19, 2007, the <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">[|Dow Jones Industrial Average] <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"> hit a record high, closing above 14,000 for the <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">first time. <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">
 * <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"> On August 15, 2007, the Dow dropped below 13,000
 * <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"> <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">The much anticipated passage of the $700 billion <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">[|bailout plan] <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"> was struck down by the House of Representatives in a 228–205 vote on September 29, 2008
 * <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"> <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">Despite congressional passage of historic bailout legislation, which was signed by President Bush on Saturday, Oct. 4, Dow Jones Index tumbled further when markets resumed trading on Oct. 6
 * <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"><span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"> Job losses in the financial sector were significant, with over 65,400 jobs lost in the United States as of September 2008

<span style="DISPLAY: block; FONT-SIZE: 130%; COLOR: rgb(226,101,101); FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif; TEXT-ALIGN: left"> //** <span style="FONT-SIZE: 110%; FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">

How the government was effected: **// <span style="DISPLAY: block; FONT-SIZE: 130%; COLOR: rgb(226,101,101); FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif; TEXT-ALIGN: center"> <span style="FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">**//<span style="FONT-SIZE: 140%; COLOR: #740b0b; FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">

How Canada is Doing: //** <span style="FONT-SIZE: 140%; COLOR: #37200b; FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">Since Canada has a much smaller economy than the United States, our country was not hit as hard with the crisis. We did not have a housing bubble collapse but we are indeed very much affected by the United States markets.

<span style="FONT-SIZE: 140%; COLOR: rgb(158,16,16); FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">** WHAT THE EXPERT SAYS: ** [|Visit Kollapsnik's Blog] //<span style="FONT-SIZE: 80%; COLOR: #600b0b; FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">**The Media's Portrayal of the Crisis: Current Articles To Read ** // <span style="FONT-SIZE: 120%; COLOR: #37200b; FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">**New York Times:** <span style="FONT-SIZE: 120%; FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">http://www.nytimes.com/2008/11/14/business/14markets.html?_r=1&hp&oref=slogin <span style="FONT-SIZE: 120%; FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"> **Globe And Mail:** <span style="FONT-SIZE: 120%; FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">http://www.reportonbusiness.com/servlet/story/RTGAM.20081113.wflaherty1113/BNStory/Business/home <span style="FONT-SIZE: 120%; FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"> **Toronto Star:** <span style="FONT-SIZE: 120%; FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif">http://www.thestar.com/business/article/536103SAN <span style="FONT-SIZE: 120%; FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"> **San Francisco Chronicle:** <span style="FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/11/13/financial/f133156S95.DTL&tsp=1

media type="youtube" key="dEGOmE4_uhQ" height="344" width="425" <span style="COLOR: #550606; FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">//**A YouTube Video of the newly elected President of America, Barack Obama and his plans to pull the US out of it's financial crisis**//

<span style="FONT-SIZE: 110%; COLOR: #37200b; FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">**// Want To See More Blogs From The Experts? //** Visit <span style="FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">http://wordpress.com/tag/subprime-mortgage-crisis/// <span style="FONT-SIZE: 120%; COLOR: #6a0c0c; FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">**// Bibliography: //**  Bloomberg. "Our Country is Sinking." Weblog post. __SubPrimeCrunch__. 11 Nov. 2008. 13 Nov. 2008  <span style="FONT-SIZE: 110%; FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif"> <   <span style="FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">http://www.subprimecrunch.com/2008/11/gms-skid-accelerates-as-credit-crisis.html <span style="FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">  **<span style="FONT-SIZE: 110%; COLOR: #37200b; FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">>. **

Butler, Brian. "What caused the credit crisis?" Weblog post. __GloboTrends__. 12 Nov. 2008. 13 Nov. 2008 < <span style="FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">http://blog.globotrends.com/?p=295 <span style="FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif"> >.

"Credit Card Bailout - Financial Situation of American Express." __Subprime Blogger__. 11 Nov. 2008. 13 Nov. 2008 < <span style="FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif">http://www.subprimeblogger.com/?p=167 <span style="FONT-FAMILY: 'Palatino Linotype', 'Book Antiqua', Palatino, serif"> >. <span style="FONT-SIZE: 130%; COLOR: rgb(207,32,32); FONT-FAMILY: 'Palatino Linotype','Book Antiqua',Palatino,serif"><span style="COLOR: rgb(177,16,16)"><span style="COLOR: rgb(3,3,3)">**// Caitlin Gardner, Michelle Beck, Mitch Houlahan & Rukshan De Silva //**