Featured
Panic of 2008
Sugar Editorial Picks
Definition: Panic of 2008
The uncertain nature of the global economy will likely continue for some time, but the unraveling of investment banking and the drastic market sell-off in the following weeks has already been given a name — the Panic of 2008.
The panic in the US is playing out the effects of cheap money that encouraged consumer borrowing and subprime mortgage lending that gave home buyers access to loans they could not afford, driving the housing market into an unsustainable bubble. Financial institutions made bad bets on the housing market and ended up with worthless assets that had to be written off in quantities disproportionately large for the capital reserves maintained by these banks.
More on SavvySugar
Fall Award Season
Top Brands
Miss Avant Premiere
Office
G Star