- Aug 30 Thu 2007 11:40
- Aug 30 Thu 2007 11:28
- Aug 29 Wed 2007 11:32
- Aug 26 Sun 2007 00:57
- Aug 14 Tue 2007 23:16
Recently, a good friend asked me about “subprimemortgage”.
Fortunately, the attendant of my bank gave me this artcle.
It talked about how the subprimemorgage happened.
First, some accommodators with bad credit records got the mortgages through some brokers.
Then HSBC bought these mortgages and sold to bull who transform these goods into MBS and moreover, they embellished MBS with other derivatives. After these derivatives became CDOs, CDOs could be traded in the fund market.
However, the famous institution of fund evaluation level these CDOs because of lacking records.
Finally, a lot of institutions which want to buy diverse funds for hedging bought these funds. 2006, there are 100 billion US dollars transformed into 375 billion US dollars of these funds.
It’s such a serious problem.
A lot of people wanted to decrease their losses, which made the crisis of the banks.
So, now the government of the federal reserve system tried to lower the problems.
- Aug 11 Sat 2007 17:22