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 The private RMBS market largely collapsed after 2008 and has been replaced by government-backed securitization characterized by much tighter underwriting and higher standards.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)
“Newspapers are unable, seemingly, to discriminate between a bicycle accident and the collapse of civilisation.”
—George Bernard Shaw (1856–1950)