Question on subprime(mortgage)

[josie 8]

What happen.

Why they are saying that things did go bad.

[Gary D 76]

What happen.

Why they are saying that things did go bad.

A sub prime mortgage is a mortgage lent to someone with a poor credit record and who is more than likely unable to sustain the repayment in the longer term. i.e. a high risk loan. These loans which normally carry a higher rate of interest were then bundled up and sold on to banks that just saw the higher than normal returns but did not appreciate the higher risk. Basically the US banks sold all their dud loans to greedy UK and European banks.

[josie 8]

Thank you.

US,UK and European banks.

On those banks,money is owned by the goverment or private or both?

[josie 8]

I dont know but,I think this is something to do with coins.

Just an opinion.

That the mint is minting money and foward them to the bank.

And the bank lend and borrow money to others local and foreign.

Its more than money.

Since there is a problem on loans who owns the money in a sense.

Will we wait for the debasment of coin metal due to high price of metal or lossing the cent itself due to deficit and bad loans,just an opinion.

For Im thinking that the coin today does not reflect the true value of its purchasing power as the goverment will protect its people, in debasing and lossing the cent but the deficit and bad loans is the problem for inflation.

Edited February 20, 2008 by josie