Subprime Mortage part 1

There are 2 class in USA. One where the people with high ability to pay the loan house and the other one with low ability to pay it. The low one is called Subprime Mortgage.

The Crisis came from the moment when they can’t afford the money any longer to pay the loan house because the rate of interest became higher. This make the company that manage that loan became bankrupt.

Bank and some company that buy the Obligation became to lose out and the price of share of that bank became down too. But, why this can influence to our country, Indonesia?

This is because not only bank and company is USA that buy that Obligation but also other country like China, Australia, India and many more. Because the price of share is down….many of them that have share in Indonesia make Sell activity in our market and so IHSG became down right now.

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