The trigger for busting of the housing bubble can be traced to increase in inventory of unsold homes with increasing construction to cash-in on the boom. The unsold inventory was up almost 40% in Sept’06 over previous year. This was accompanied by transition of loans from ‘interest only’ and teaser rates applicable for 12-24 months to higher rates … Continue reading Revisiting Subprime Crisis – Part II..
The subprime crisis continues to reverberate across the global economies even though it is eight years since it hit its peak. While the original culprit, the US, seems to have largely come out of it, rest of the world, particularly Europe and Japan, still struggle to give direction to their economies. The crisis would remain … Continue reading Revisiting Subprime Crisis – Part I..