Subprime Mortgage Crisis

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Subprime Mortgage Crisis
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The subprime mortgage crisis transpired when banks dealt too many mortgages to sustain the demand for mortgage-backed securities offered through the secondary market. When home prices declined in 2006, it set off defaults. The risk extended into pension funds, mutual funds, and corporations who control these derivatives. The resulting 2007 banking crisis and the 2008 financial crisis created the worst recession since the Great Depression.