4. By the
way, this
time it’s
not about
Iraq.

8. Government also encouraged
lenders to lend to sub-prime
borrowers, arguing that this
would help even the poor and
young to buy houses.

16. - House prices started falling.
- This increased the default rate among sub-prime borrowers.
- Many unwilling to pay for declining in value of their home.
- The Loan collateral is typically the home being bought.
- This increased the supply of houses for sale while lowering the demand.
- Thereby lowering prices even further and setting off a vicious cycle.

18. this become a systemic crisis . . .

19. original lenders had further
sold their portfolios to other
players in the market.

23. *
*
*
*

25. What’s Next?

26. [ Any Solution ]