Subprime meltdown took economy with it
The housing boom had powered the U.S. economy for five years. Now, in early 2006, signs of weakness within the subprime industry were harder to ignore. People with less-than-stellar credit who had bought homes with adjustable-rate mortgages saw sharp spikes in their monthly payments as their low initial teaser rates expired. As a result, more lost their homes; data showed that 70 percent more people faced foreclosure in 2005 than the year before. Housing developers who had raced to build with subprime borrowers in mind now had fewer takers, leaving tens of thousands of homes unsold.
Publication: honoluluadvertiser.com
Date of Publication: July 6, 2008
Article URL: http:/ / www.honoluluadvertiser.com/ apps/ pbcs.dll/ article?AID=/ 200806230100/ BUSINESS12/ 806230334
Comments by Sachiko
This article summarizes the credit crisis that we are facing.
