Subprime crisis impact timeline

Subprime crisis was a difficult time for many people. It happened in 2007, when people borrowed money to buy things they couldn't afford and didn't have enough money to pay it back. The problem began when people with bad credit were given loans they couldn't afford, called subprime loans. Banks loaned them the money even though they knew the people couldn't pay it back, and this caused a lot of people to lose their homes when they couldn't make their payments. For example, if someone wanted to buy a house but didn’t have enough money to buy it all at once, a bank would give them a loan (called a mortgage) and the person would have to pay it back over time. But if that person couldn’t make their payments, the bank would take their house away and the person would no longer have a place to live.

The impact of the subprime crisis was felt all over the world. In the United States, many people lost their jobs and homes, and the housing market suffered. The value of many investments, such as stocks and bonds, also went down. This caused the stock market to crash in 2008, which had an even bigger effect on the economy. As a result, people all over the world felt the effects of the subprime crisis.