CATEGORIES OF REASONS BEHIND SUBPRIME MORTGAGE CRISIS 2007-2008 AND ITS APPLICATION IN FUTURE

Abstract

A number of reasons behind subprime mortgage crisis in the US have been examined, and this paper aims to look at this crisis in another perspective by categorizing and linking of reasons in to three broad categories: complexity, conflict and cupidity. Throughout the paper, it shows that these categories are intertwined with each other, and together they amplified the impact of collapse of one sector in a global scale. By addressing the three main key problems, it could help looking at the picture of the crisis in another way and provide meaningful information for future purposes.