1993 Tierradorian financial crisis: Difference between revisions
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The '''1993 Tierradorian financial crisis''' was a severe [[w:Financial crisis|economic crisis]] which began in mid-to-late 1993 and went on until 1996, where it affected several [[Crona|South Cronan]] nations, most notably [[Tierrador]]. The collapse of the [[1985–1993 Tierradorian housing bubble|housing bubble]] in Tierrador and [[Ceylonia]], [[w:Predatory lending|various predatory lending groups]] taking advantage of low and middle income homebuyers and homeowners within the countries, and ridiculously excessive risk-taking by Tierradorian [[w:Financial institution|financial institutions]], which resulted in [[w:Bank runs|bank runs]], [[w:Default (finance)|bank defaults]], and the closing, acquisition, and/or bankruptcy of several medium and large financial institutions throughout Tierrador. | The '''1993 Tierradorian financial crisis''' was a severe [[w:Financial crisis|economic crisis]] which began in mid-to-late 1993 and went on until 1996, where it affected several [[Crona|South Cronan]] nations, most notably [[Tierrador]]. The collapse of the [[1985–1993 Tierradorian housing bubble|housing bubble]] in Tierrador and [[Ceylonia]], [[w:Predatory lending|various predatory lending groups]] taking advantage of low and middle income homebuyers and homeowners within the countries, and ridiculously excessive risk-taking by Tierradorian [[w:Financial institution|financial institutions]], which resulted in [[w:Bank runs|bank runs]], [[w:Default (finance)|bank defaults]], and the closing, acquisition, and/or bankruptcy of several medium and large financial institutions throughout Tierrador. | ||
It is unknown and widely debated when the 1993 crisis began, however many economists agree that the sudden collapse in value of [[w:Mortgage-backed securities|mortgage-backed securities]], which were tied to Tierradorian [[w:Real estate|real estate]]. | It is unknown and widely debated when the 1993 crisis began, however many economists agree that the sudden collapse in value of [[w:Mortgage-backed securities|mortgage-backed securities]], which were tied to Tierradorian [[w:Real estate|real estate]]. This was partly caused by loose banking regulations, which basically allowed for borrowers who would now be considered ineligible were able to apply for a mortgage loan for a house or property of which they could not afford. This caused major failure of large Tierradorian financial institutions. |