A discussion and analysis of the financial crisis
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Abstract
September 2008 was the month when financial news became front page news. In September of 2008, American financial centers were hit with a series of bankruptcies and closings that seemed to take most experts by surprise. However, anyone paying attention to the financial world could see that these emergencies were part of a pattern of economic collapse that included the subprime crisis, the collapse of the real estate bubble and the runaway fuel crisis.In 2007, subprime mortgage loans lost investment firms trillions of dollars. The term "subprime" was popularized during this time to describe the practice of giving loans to people with a history of bad credit decisions, bankruptcy and limited borrowing experiences. Amazingly enough, a great number of the borrowers defaulted on their loans leaving the banks with significant losses that couldn't be made up through foreclosure.
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