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Write a page, in which you argue that subprime mortgages are or are not good for...

Write a page, in which you argue that subprime mortgages are or are not good for the country and the individuals who take these mortgages. Whichever position you take (for or against), please consider how more (or less) of these loans could have positive and negative effects.
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Subprime mortgages are not good for the country. The global depression in 2008 was mainly due to the subprime mortgages. Due to increase supply of housing that lead to  the fallen in housing prices leads to the decline in mortgage payments. That negative affects the performance of banks and they restrict lending which negatively affect the economic activities in the country.

These loans has both positive and negative impacts. The positive impacts are it is easily available to customers.It is a relief for low credit rating customers. It provide a platform for low customers to increase their credit rating through its regular payment. The disadvantages are it is issued by high interest rate. It is very risky loans because they are allowed to low credit customers and it is very chance for borrowers defaulting.

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