| | | | Focus Reports: This section contains reports which give detailed explanations of various institutions, economic variables or events. In this section you will find our description of the emergence of the US sub-prime problem and how it developed into an international financial market crisis.
 US Sub-Prime – Its impact on the Global Credit Market (PDF 90k) US The measurement of inflation (PDF 130k) Focus on G8 - June 2007 (PDF 65k) Focus on G8 - June 2006 (PDF 50k) The Federal Reserve System (PDF 600k) |
US Sub-Prime Its impact on the Global Credit Market Low interest rates and rising house prices in the US encouraged mortgage companies to lend to sub-prime borrowers. However, by 2006, sub-prime borrowing accounted for around a fifth of all new mortgages, totalling over $600bn in value. These borrowers are now struggling to make their monthly mortgage payments and many are losing their homes.  Get the full report here |