Market Collapse
The rapid growth in low quality mortgages, financed through securitization, is widely believed to be a major cause of the late 2000s financial crisis, also known as the Subprime mortgage crisis. The private RMBS market largely collapsed after 2008 and has been replaced by government-backed securitization characterized by much tighter underwriting and higher standards.
Read more about this topic: Residential Mortgage-backed Security
Famous quotes containing the words market and/or collapse:
“The only reason to invest in the market is because you think you know something others don’t.”
—R. Foster Winans (b. 1948)
“The Roman world is in collapse but we do not bend our neck.”
—Jerome (c. 340–420)