5th Credit Crunch Anniversary: No light at the end of the tunnel?
by Katarzyna Komorowska at FXstreet.com
Already five years have passed since the EU had been infected by the subprime mortgage crisis gnawing on the US economy. Today the end of the credit crunch is still nowhere to be seen and the permanently undermined investor confidence in EU peripheral countries' economies pushes successive Eurozone members to queue for international bailout.
The debt crisis, which at present affects the entire world, originated from excessive investor speculation and the housing bubble in the US which had finally burst in 2006. In August 2008 an epidemic of defaults on mortgage loans triggered a crisis severely affecting the mortgage market.