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7 July, 09:25

What problems did the decline in housing prices that began in 2006 cause for the financial system?

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  1. 7 July, 10:16
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    Basically, because of the declining prices, there was a rise in defaults among the subprime borrowers, Alt A borrowers, those with adjustable rate mortgages, and those who made small down payments. Because of this, securities that were backed with mortgages started losing value which caused a lot of money losses for those who investment institutions that owned those cases.
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