Lehman Brothers

..AND now AIG. What is happening to the market?? Credit crunches. where are all dese huge money going?? Maybe political connection

The sub prime crisis was caused by the greed of the international bankers,the big banking institutions were lending money on huge interest without any collateral security and when the interest rates increased then the people who took loans stopped giving their installments this was the reason which mainly caused the sub prime crisis.the problem with these banks was that the interest rates were high for those people who had bad credit ratings,so if a person doesn't have money already and you expect him to pay huge interest then what else could happen?

Also there is another big reason for the US sub prime crisis and that is CDS, that is what happened with AIG, it cought itself in to endless and meaningless circle of credit guarantee schemes which eventually it failed to handle and the whole system collapsed.