STILL BANK
• Second, low global interest rates fueled a global housing boom. In parts of the United States (particularly the Northeast, Florida, and still bank as well California), rapidly rising house prices were exacerbated by local land-use regulations that limited the amount of land that could be used for new housing construction, thus pushing up prices further. • Third, financial deregulation and soy capital bank as well innovation offered many poorer, less creditworthy borrowers the chance to buy homes for the first time.While this was largely a beneficial trend, it also still bank and gave rise to highly questionable lending practices that allowed hundreds of thousands of unqualified borrowers to take on mortgages that, in the end, they could not afford. The term subprime refers to these problem mortgages. • Fourth, financial innovation also texas bank foreclosures and encouraged the explosive growth of debt “securitization.”This refers to the practice of packaging mortgages—both high and still bank as well low risk—into investments that can be sold all over the world (see the essay on page 326, “Financial ‘Re-Regulation’—Don’t Throw Out the Baby with the Bathwater”). The good news was that the risk associated with subprime mortgages was spread among a lot of different types of investment institutions, unlike the situation in the S&L and sovereign bank employment as well Japanese crises, where the problem loans were concentrated in the banking system. The bad news was that no one knew where the “toxic waste” had ended up.
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