“Interview on the Subprime Crisis in the United States”IntroductionThe topic of this interview is “the causes and effects of the subprime mortgage crisis”. The major players in this industry include home buyers, businessmen or investors. The interviewer's name is Aimee Peters, an investor in Texas. John Holmes has been in the home sales industry since 1994 and has extensive experience and information in this industry. This interview aims to examine the effects of subprime mortgages on home buyers (consumers) and sellers, business people.Summary of the interviewers' viewsBackground and immediate cause of the subprime crisisThe subprime mortgage crisis Risk in the United States can be summarized as a set of actions and conditions that were fundamental attributes of a financial crisis and resulting recession, which became evident and visible in 2008. Some of the actions or Factors that have contributed to this crisis of rising and falling housing costs are attributed to securities held by financial institutions. . In the years following the crisis, the United States received large sums of money in foreign loans from rapidly developing economies such as Asia and other oil-producing countries (Rao and Sisodiya, 11). The massive inflow of foreign funds and low U.S. interest rates between 2002 and 2004 are attributed to the volatile environment characterized by easy credit conditions. This environment is largely attributed to housing and credit bubbles. However, the immediate cause of the subprime crisis was the bursting of the housing bubble in the United States. The bubble peaked between 2005 and 2006. Characteristics of the subprime crisis The crisis was characterized by an increase in neglect and foreclosures of subprime mortgages, and the force behind this enormous trading intent was speculation by homeowners in positive market trends. Likewise, the crisis rendered consumers helpless as those who purchased homes with mortgages were unable to repay, causing default rates to skyrocket. Conclusion In conclusion, the subprime crisis is a historic economic crisis that the United States and other European countries have gone through. This type of crisis can be avoided in the future if the US government implements strict policies guiding mortgage lenders and other private financial institutions (Rao and Sisodiya, 34). The consequences, both for consumers and homeowners, were severe and the overall result was the American recession. These economic situations may recur if the government and private sector cannot adopt sound regulations and ensure their subsequent implementation..