digg

Join DiggAbout

Discover the best of the web!
Learn more about Digg by taking the tour.

See the original image at gbr.pepperdine.edu

Why Did Subprime Loans Become Such a Big Deal?

gbr.pepperdine.edu — Finally someone answers the question: Why did a relatively small percentage of subprime mortgage defaults lead to a spiraling national credit crisis? And where do we go from here?

Bury
show profanity settings
expand all
  • douglass323, on 05/05/2008, -0/+0Pepperdine finance professor Abraham Park, PhD, explains how credit rating agencies basing the credit risk of mortgages on the faulty assumption to create the credit crisis. Before expecting the house prices to rise, he says, government and financial market participants must reevaluate the credit rating agencies, credit risk pricing models, and structured finance products.
  • dscottpeps, on 05/09/2008, -0/+1so what do you think is going to happen next with the credit ratings agencies? anyone know what the outcome of the senate hearing last a couple weeks ago was?
  •  

    Login or register to add a comment

    Create a new account or login to join in the conversation on Digg. You'll also be able to Digg stories to help promote things you like.


© Digg Inc. 2008 — Content posted by Digg users is dedicated to the public domain.
DIGG, DIGG IT, DUGG, DIGG THIS, Digg graphics, logos, designs, page headers, button icons, scripts, and other service names are the trademarks of Digg Inc.