subprime crisis 2008, significant effect of US

financial crisis 2008, significant effect of US, financial crisis 2008, significant effect of US, financial crisis 2008, significant effect of US, financial crisis 2008, significant effect of US, financial crisis 2008, significant effect of US, financial crisis 2008, significant effect of US, financial crisis 2008, significant effect of US, financial crisis 2008, significant effect of US, financial crisis 2008, significant effect of US,

When the US sneezes, the world catches a cold

Theres a mortgage in my house

The crisis began with the burst of the US housing bubble in

2004, after a long period of steadily increasing house prices

With subprime lending -unqualified borrowers

in 2005-2006, it came time to pay the piper Interest rates on

the subprime mortgages shot up

In 2007, BREAKING DOWN 'Housing Bubble'

• nearly 1.3 million US housing properties were subject to foreclosure activity

• Mortgage debts become ‘worthless’ debts

• banks weren’t willing to lend to each other any longer

• Liquidity risk

Other reason of financial crisis 2008

Increasing oil prices

Food has become so much more expensive

the credit crisis - which was created in the US - can only be solved by the US

There is little Europe can do but stand by and try to ride out the storm