Why were subprime mortgages so risky

Reference no: EM133659700

Problem: We are learning about the relationship between income and savings, let's look back to the recent credit crisis that sent our economy into the greatest financial crisis since the Great Depression. Watch this short video titled "The Crisis of Credit Visualized" and then respond to the following: Why were subprime mortgages so risky? Explain how bundling up many mortages into CDOs helps manage the risk of people not being able to pay their mortgage. What went wrong and could it happen again?

Reference no: EM133659700

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