Abstract
This study is aimed to analyze the origin of the crisis in United States its transfer to mortgage market to financial market and ultimately the entire economy. The subprime mortgage crisis is an economic problem that sent the United States economy into recession. The crisis has led to an overwhelming number of foreclosures for the U.S, this means the mortgage payments decline causing banks to incur in losses that brought about consequences such as restricted lending which provoked the economic activity to slow down and increased unemployment. This situation has heavily impacted the rest of the world especially those countries that depend strongly of the U.S economy for example Central America, due to the close relations in trade, tourism and remittances. These countries began to suffer the consequences in the first quarter of the year 2009.