Subprime mortgages

Subprime mortgages have high interest rates and are granted to people who give few guarantees. This type of mortgage is also called second chance and is widespread in the USA.

Last summer the possible collapse of the industry has put a strain on American and European stock exchanges, but through the intervention of the ECB and the Fed have given liquidity have prevented further negative consequences.

In Italy this type of mortgage (subprime) is almost unknown, but there are people who have investments in mutual funds linked to this sector and the subprime mortgage problems were not reported at all by European banks. The crisis is not over.