O'Reilly logo

Financial Crisis Inquiry Report, Authorized Edition by Financial Crisis Inquiry Commission

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

12
EARLY 2007: SPREADING SUBPRIME WORRIES
035
Over the course of 2007, the collapse of the housing bubble and the abrupt shutdown of subprime lending led to losses for many financial institutions, runs on money market funds, tighter credit, and higher interest rates. Unemployment remained relatively steady, hovering just below 4.5% until the end of the year, and oil prices rose dramatically. By the middle of 2007, home prices had declined almost 4% from their peak in 2006. Early evidence of the coming storm was the 1.5% drop in November 2006 of the ABX Index—a Dow Jones-like index for credit default swaps on BBBTRANCHES of mortgage-backed securities ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required