The Subprime Mortgage Crisis And Great Recession

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Another unethical situation occurred around the 2007; however, this situation affected more than just a small group of investors. The Subprime Mortgage Crisis occurred and correlated with Great Recession. Home prices and property values went down and many people, unable to afford mortgages were forced to foreclose their homes. The situation had begun when banks were forced to hand out loans to those with low incomes and credit. Unfortunately, creditors were unable to keep up with mortgage payments and defaulted on the loans that were given. At the same time investors who bought bundled mortgages, known as mortgage back securities expected to get a return on their investments but were unable to. Knowing investors would not be able to meet returns

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