A- The crisis of subprimes
The beginning was in July 2007 when the American bank lost a lot of money cause by the crisis of subprimes. The subprimes are mortgage funds accord to poor people. A fund is when you need money you go to the bank and the bank lends you money. A mortgage is when your house for example can be sells to pay back the bank. The crisis of the subprimes begins on the second semester of the year 2006 with the decrease of property funds in the United States of America, the people can’t pay back.
We can see on the graph the evolution of the rate of interest in the USA between 1999 and 2008. In 2006 this rate begins to increase a lot to around 16% in 2008. The poor people can’t pay back the money because this rate is too high so they sell their house to pay back. A lot of persons do this operation, the number of house for sale increase a lot and the price decrease so this house were not sell and the poor can’t pay back the bank
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I- Description of the crisis
A- The crisis of the subprimes
B- The crisis of the financial market
II- Consequences of the crisis
A- Social consequences
B- Financial consequences