The worst financial crash since 1929, which brought about the Lehman Brothers collapse and put millions of people out of work, seems far behind us. The US stock market is at record highs, unemployment is lower than ever, and investment is through the roof.

But what about the chief cause of the 2008 crash: subprime mortgages? These cheap mortgages aimed at people with bad credit have largely been accepted as a major cause of the US mortgage crisis and subsequent collapse. As such, you would think these types of dodgy loans would be a thing of the past.

Here’s the thing though. They’re back. Although they come with a different name and appearance, the subprime mortgage is back with a vengeance and they are more popular than ever.

Here’s the current state of play and what it might mean for the future of the US economy.

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Subprime Mortgages Explained

If you’re wondering what subprime mortgages are, here’s a quick explainer. They’re essentially housing loans given to people who don’t have the credit to qualify for a mortgage.

Prior to 2008, they were given out to millions of people with no credit who were clearly unable to ever…