thedalek
sub prime loans were sold from 2001 and on, with a 4 year honey moon period.
Subprime started in 2005, it wasnt made public till 2007.
so yes the banks losing 1 trillion to subprime caused the GFC
the GFC was about money lost in credit, and resold to others who got burnt.
and the GFC caused the high unemployment as the money evaporated out of the economy.
So tailspin is 100% correct. Unemployment was a outcome of the housing crash.
