2007 Mortgage Market Collapse
Crash
United States
2008 Financial Crisis

More About Mortage Market Collapse

  • May have been fueled by low interest rates after the 2000 Tech Collapse
  • Collapse initiated when the Fed started to raise interest rates in 2004 (making new & variable mortgage payments more expensive)
  • Failing Mortgages cause securitized mortgage structures to collapse
  • These failures cascaded into a larger crisis



Lack of Accountability in Mortgage Market Collapse
  • Although millions lost their homes or saw their investment/retirement accounts crater, there was little accountability placed on those behind the failure
  • No bank CEOs were brought to trial or otherwise held accountable
  • No bailed out banks CEOs lost their jobs - instead years later continue to collect bonuses
  • Ultimately this eroded the publics trust in the US banking system


Other Names for the Mortgage Market Collapse

  • Subprime Meltdown