1. What is subprime mortgage crisis?
2. Start of the government’s deregulation of the financial industry
3. How the global economic crisis happened?
4. The cozy relationship between government and financial industry
5. The results and the responsibility
6. Application to Korean case - situation of Busan savings bank
As a student who studies economics, I heard the words like “global economic crisis”, “subprime mortgage loan” thousands of times. Subprime mortgage loan is a type of mortgage that is normally made out to borrowers with lower credit ratings. Because of their lower credit, borrowers have a larger-than-average risk of defaulting on the loan. The subprime mortgage crisis was the outcome of lenders making loans to borrowers who could not afford the home they purchased.