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The U.S. mortgage crisis is often referred to as the subprime mortgage crisis. A subprime mortgage is simply a loan made to someone with a poor credit history. This has typically been a narrow market and has involved a fairly small portion of borrowers. However, when these borrowers were unable to pay their mortgage payments it created a major financial shock and pushed the housing market to the floor.
Many of the factors that led to the mortgage crisis took their roots shortly after 9/11 and the invasion of Iraq. After the attacks on the World Trade Center, the Federal Reserve cut interest rates to an unprecedented low...
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