1993 Tierradorian financial crisis: Difference between revisions

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.