Subprime Mortgage Crisis

The Subprime Mortgage Crisis occurred in the mid-2000s when financial institutions offered risky loans to borrowers with poor credit histories. Many of these loans had low initial payments that later increased significantly, leading to widespread defaults. As homeowners struggled to pay, housing prices plummeted, causing banks to lose billions. The crisis triggered a financial meltdown, leading to the Great Recession, widespread job losses, and government bailouts. It highlighted issues of irresponsible lending, inadequate regulation, and the interconnectedness of financial markets, affecting economies worldwide.