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  1. pandora's box's Avatar

    • Join Date: Aug 2007
    • Posts: 17
    #1

    Question Can you help me?

    What does subprime mean?
    Reference pattern:
    Stocks in Asia continued their downward spiral today amid the widening fallout from the United States’ subprime mortgage crisis.

  2. Casiopea's Avatar

    • Join Date: Sep 2003
    • Posts: 12,970
    #2

    Re: Can you help me?

    subprime- WordWeb dictionary definition

    Adjective: subprime
    (financial) relating to or for people with a poor credit rating
    "subprime mortgages"

    Subprime: Definition and Much More from Answers.com

    Subprime
    A classification of borrowers with a tarnished or limited credit history. Lenders will use a credit scoring system to determine which loans a borrower may qualify for. Subprime loans carry more credit risk, and as such, will carry higher interest rates as well. Approximately 25% of mortgage originations are classified as subprime.

  3. pandora's box's Avatar

    • Join Date: Aug 2007
    • Posts: 17
    #3

    Re: Can you help me?

    Dear Casiopea
    tahnks for your help

  4. Casiopea's Avatar

    • Join Date: Sep 2003
    • Posts: 12,970
    #4

    Re: Can you help me?

    You're most welcome.

  5. Barb_D's Avatar
    • Member Info
      • Native Language:
      • American English
      • Home Country:
      • United States
      • Current Location:
      • United States

    • Join Date: Mar 2007
    • Posts: 19,221
    #5

    Re: Can you help me?

    I heard a news story the other day that included a discussion of this word. All by itself, "subprime" sound like something only slightly less than the best (the "prime" sounding like it's just great).

    The major point in the news story was that people who bought these mortgages didn't really do their research, but that the people seling them did a lot to hide the amount of risk, and putting such a "nice" name on it reflects that attitude.

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