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So keen were the mortgage lenders to grant such loans to people that they essentially borrowed money themselves to be able to lend people the money. Such loans were made and taken based on the mistaken premise that the upward trend would continue. When the positive trend did not continue, individuals and the global markets were thrown into a serious financial crisis.
As a result of inflation, 2007 saw an increase in interest rates, which meant mortgage payments increased as well. In cases where the loan had been made inappropriately, and where the lender had taken a significant risk, such people struggled to repay their debts...
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