George Parr’s Last Laugh – The Subprime Mortgage
The Subprime Mortgage crisis that began in the US has affected the stability of the financial world. There are already a lot of ink spilled in trying to explain the causes of the Subprime meltdown, but here is another way of explaining what really happened in a more layman’s terms. George Parr’s views on the Subprime is comical and are unbearably true!
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It’s not just a subprime issue. It was really more about a lack of income and asset verification that allowed anyone to qualify for a home loan, though most had no history of supporting that level of debt.
Indeed, the subprime issue is caused by lack of asset verification that could have been well avoided if bankers and rating agencies start to do their jobs. Highly structured subprime derivatives are risky, especially when homeowners are moving towards a defaulting trend.