Sub Prime market crash- Is it entirely related Real Estates of US?
February 9, 2010 - 11:13 pm
Is the whole of Real estate business in US is hit by Sub prime crash? It seems, the onset of this phenomenon is almost sudden . Is any other sector like this is still ticking to be blown off?
Real estate is the most important sector, but there are others too. For example, a record producer might be expecting a certain amount of revenue from a certain record. The producer could package those revenues in a security, much like mortgage backed securities, and sell it. The market’s perception of risk could change drastically, causing financial institutions to have funding problems.
February 10th, 2010 at 4:55 am
It is only in real estate as far as I know, but the effects have placed Banks and other financial institutions at risk also. Construction loans to developers may go sour too, if they cannot sell new homes in the bad housing markets
References :
February 10th, 2010 at 5:07 am
Real estate is the most important sector, but there are others too. For example, a record producer might be expecting a certain amount of revenue from a certain record. The producer could package those revenues in a security, much like mortgage backed securities, and sell it. The market’s perception of risk could change drastically, causing financial institutions to have funding problems.
References :