What Could Be the Long Term Effects of the Sub-Prime Crisis Looking on the...

0.Introduction The paper result discuss how the sub-prime crisis in the US came up and what were the effects for the Citigroup. It depart withal give an overview of what might carry on in the financial sector looking at the biggest cant in the world. I came up with this topic because I also invest money on the stock market place. It is re tout ensembley measur sufficient to understand the market and to analyze where it might be red. The crisis has already affected it and it will go on. Also since summer 2007 when the crisis started the media has been discussing it all the time. First I want to explain why the sub-prime crisis happened by looking at the American housing bubble. Then I will compare the Citigroup before and after (still on-going crisis). I will also give an estimated view of where this crisis will lead and what ef-fects it will have for the bank. In the conclusion I am going to summarize the main parts and will express my induce opinion where this might lead. 1.Sub-prime crisis 1.1What is a sub-prime? Sub-prime means persons who are debtors who do not have a lot of money. They obtained loans but were not really certified to receive one. This sector of the credit market started in June 2003 when former US Federal Reserve president Alan Green-span lowered the key interest rate to 1%.

A lot of people took loans for mortgages without persuasion about being able to pay back their mortgages at a much higher(prenominal) in-terest rate. The market was booming and since then mortgages have been given to customers value $ 3200bn. About 20% of them were clients with little money or no proof of income. At this time nobody was really thinking where all that would lead to. 1.2Short overview over the crisis In the offset printing of 2007 the financial market startet to feel the consequences as the US-housing bubble crashed. slew could not pay their mortgages back because house prices started to fall exceedingly and on the other side the debts increased. At this time close every week there were... If you want to get a full essay, order it on our website: Ordercustompaper.com

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