They could have reduced their exposure to complex derivative products like MBS, CDS, CDO's etc. MBS - Mortgage backed securities CDO - Collateralized debt obligations CDS - credit default swaps
The recession started because the government gave incentives to banks to issue high risk loans for Americans to buy houses. The people who bought these houses could not pay back their loans, and...
The current recession, also known as the Great Recession of 2007, began in late 2007-early 2008 and was the result of the burst of the housing bubble. A bubble means the inflation of value of goods...