Subprime crisis

A financial crisis that developed in the United States in 2006 following a rapid decline in real estate prices and a rise in interest rates, which led to high default rates on subprime mortgages, which in turn caused many institutions specialized in structured finance to go bankrupt and generated a widespread mistrust for securitized receivables. In the summer of 2007, the crisis spiralled into a global stock market crisis, driving central banks to inject liquidity into the financial system and ease their monetary policies.