The real estate crisis that affected the United States between 2006 and 2007.

Introduction

Today we will talk about the real estate crisis that affected the United States between 2006 and

2007.

This real estate crisis also called the "subprime crisis", has greatly

affected the United States. This

crisis that should have remained in the United States, and more particularly the real estate sector,

has finally spread all over the world. This spread is the result of a technique that is in the midst of

finance, securitization.

As a result of this crisis, the banking landscape has changed dramatically. Indeed, it has allowed to

highlight the drifts of the actors of this environment, but also to push the authorities to intervene so

that never again such a situation is realized again.

Through this presentation, we will try to make you understand how this crisis appeared and by what

means the authorities tried to put an end to it.

I.

The origins of the crisis

Subprime mortgages are variable-rate loans granted by banks to US households that don’t have

sufficiently solid revenues to obtain conventional credit. Thus, this type of loan is based on the fact

that the guarantee is not on the income of the borrower but on a mortgage of the property acquired.

These "subprime" loans are very risky individually, but they are collectively very profitable defaults

are scarce as long as interest rates are low and, if seized, r

esale makes it possible to make beautiful

gains since the prices of real estate do not stop to climb.

Securitization is a financial arrangement carried out by a credit institution and consists of the

transformation of assets, in this case the subprime into marketable securities, in order to

be sold on

a market.

The main advantage of this technique is that it enables the credit institution to refinance itself

rapidly but also to protect itself against a possible risk of non-payment of its debt.

Subprime mortgages emerged in a context where the majority of owners were wealthy, creating an

inegalitarian context.

In addition, we can take the example of a study conducted by the Housing Center, a body charged

with fighting discrimination in the real estate environment, a middle-class African American has

31.56% risk of having his claim Of loan denied, against 10.58% for a white

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