What namely the subprime pledge crisis
 

See it to understand why so solemn the subprime ***
* will be depicted with the following almost Rights ***
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* What is a subprime mortgage crisis, see to the past to know **
** in the United States, the loan is a very mutual phenomenon, **
** from the house to the motorcar, from credit cards to call bills, loans everywhere. **
** Locals a tiny money to buy a house, commonly long loan. **
** But we also kas long asunemployment and re-employment in the United States is a very common phenomenon. **
** These revenues are not stable or no income people, how they buy a house? **
** Because the credit rating not up to standard, they are defined as sub-borrowers. **
** ** 10 ** annuals ago, from approximately the starting, **
** sky loan corporation at namely time the ad emerged above television,GHD Hair Straightener, weeklies, avenue, **
** Or in your mailbox mattered with flyers enticing: **
** 『you thought middle-class life? Buy it! 『』 **
** Savings insufficient? Loans now! 『』 **
** No proceeds? A jiong loan companies to find it! 『』 **
** Also can not furnish the premier remittance? We attempt naught down payment! 『』 **
** Too worried about interest rates? We invest the first two years ** 3 **% deduct rate! 『』 **
** Or can not afford a month? It does not material, the first month ** 24 ** You only need to pay interest on the loan after two years of the
payments to be disbursed! **
** ** Think about it, after two years you have to have found jobs or been enhanced to director, and that time can not afford
afraid! 『』 **
** Do not fret about two years or since? Oh, you truly are too detailed, **
** ** Now look at the digit of houses rose more than two years ago, to sell when you resell someone else ah, **
** ** only White lived for two years, also earned a lot too! Say that again, it does not you pay, **
** ** I believe you'll do,GHD Pink Limited Edition, do I defiance to credit, you can not borrow? 』**
** In this temptation, many U.S. citizens did not hesitate to choose a loan to buy a house. **
** (For they are worried about your debt after two years? Has always been very optimistic about the American people will differentiate you, **
** ** his videos can become leader, said after two years precarious what I can scamper for chancellor.) **
** A jiong loan company for a few months has made remarkable achievements, **
** lending out money, although, can not be regained to it? **
** A jiong **--** the company's chairman, Mr., that is a familiar diagram in the history of the U.S. economy, **
** could not know the real estate market is also threatening, **
** pocketed so the revenue tin not appear to detect a associate to share the risk Caixing. **
** A jiong then find the leading U.S. financial sector investment bank **--** brother. **
** These guys are all sounding appoint of Big Brother (Merrill Lynch,GHD Benefit Straighteners, Goldman Sachs, JP Morgan, Lehman Brothers), **
** every daytime they do? Is fed laze is laze, **
** then sent for the Nobel economist, and got a Harvard professor, and got the financial engineers, **
** to spend on the latest economic data prototype, some financial alchemy (** copula ** refining
about out of time) after, **
** come up with several inquiry reports to reckon if it is worthwhile to buy a certain stock, * *
** has been a definite country's stock market spume, and this team do anything they ambition in the risk assessment of the market's huge brother, **
** You say that they see there is no risk? **
** Jokes, risks are watched with their feet! Ah, but there is profit, then what is also hesitant to take over it! **
** So economists, financial engineers, campus instructors, the data model, stochastic simulation, after evaluation, **
** re-packaged to come up with a new product **-- CDO * *
** (Note: ** Collateralized Debt Obligation **, collateralized debt duties), **
** The fact is that bond, via the issuance and sale of the ** CDO ** bonds, so bond holders someone to point
bear the risk of family loans. **
** Light so sold, the risk is too tall, or will buy ah, **
** Assuming that the original debt risk rating is ** 6 **, are moderately high. **
** So it into high-level investment banking and general ** CDO ** two portions ** (moat )**,**
** debt crisis, the High ** CDO ** Peifu rights have prerogative. **
** Level of risk that were the two into a ** 4 ** 8 ** ** and the total risk of the same, **
** but the sometime belongs in a low-risk bonds , with investment banks putrid **'** silver tongue gold **'**, **
** seminars in the Advanced Hotel continued, **
** ** powerpoints to send beautifully crafted ** and ** excel spreadsheets **, of course, sell a
applause! **
** ** Level of risk, but the remaining high-risk bonds 8 ** how to do it? What is the hedge fund people, **
** Then investment banks found a hedge fund, **
**
** That was the financial sector to buy space in the world to sell more, the exceedingly mighty role, **
** licking the blood off the day that knife-edge, this risk is simply a chip of cake! **
** So by morality of relations in the globe to find the lowest interest rate banks borrow money, **
** and then aggressively buy the bonds in part of common ** CDO **, **
** 2006 ** years ago, the Bank of Japan interest rate only ** 1.5 **%;**
** General ** CDO ** rates may reach ** 12 **%,**
** So hedge funds to earn amuse rate lonely full full. **
** In this path, splendid entities happen, **
** 2001 ** end of the year, the United States real estate soared, equitable a few years more than doubled, **
** My God, so that loan companies like the beginning of A jiong ads, **
** there is not likelihood of housing loans do not play, **
** Even if the money Also, the house can earn a amount of money to sell. **
** Result, loans to buy a house from the people, to the Arabsalabo League? Loan companies, to major investment banks, to the assorted general banking
line, **
** to all hedge funds are production money, **
** but the investment bank was not very happy! **
** Initially, it was felt too risky to natural ** CDO ** only threw hedge funds, **
** guys did not meditation many more almost it than he earned, web desperately up, I knew in my estate activity, **
** So investment banks have begun to purchase hedge funds, a share of the plan. **
** It's like A house has released a long time at home meals, bird annoying next door neighbor happened to see the flowers dog, **
** meal was going to poison it, did not expect the dog to eat flowers the merely right, merely also the longer the muscular, **
** A house instrument allows dumbfounded, marveling mildewed edible nourishment better? **
** So it starting to eat! **
** This another hedge funds below the bad music, who they are, **
** ** 1 ** hands have money, you can attempt to take ** 10 * * money to play the bandit ah, **
** now ** CDO ** holding sought to make a big poll of lesson! So they again **
** ** CDO ** hands of mortgage bonds to the bank, **
** ** 10 ** times in commute for the lending operations of other financial products, **
** and then proceed to pursue investment bank to buy ordinary ** CDO **. **
** Section, but had signed the accord, the ordinary ** CDO ** are entire owned by us! ! **
** Investment Bank is psychologically it was large, in addition to hedge funds buy and sell silenced General ** CDO **
hedge funds to outside,GHD Red Straighteners, **
** they want to out a new product, cried ** CDS ** (Note: ** Credit Default Swap **) credit default barter) **
** Well, Wall Street is a hotbed of such talent products: **
** general investors not feel that the original high-risk ** CDO ** up, **
** Well, then I obtain hold of the insurance, which each year ** CDO ** a portion of the money as insurance , **
** handing warranty companies, but in the future out of the risk, everybody assumes. **
** To ** AIG ** represented at the insurance companies want to, ah well, so make money now ** CDO **, **
** 1 ** cent of profits are not out to It is not that we do every year giving the white! **
** Hedge funds want to,GHD NZ, OK, have earned a few years, **
** after the increased risk, part of the profits just minutes away, **
** there is an insurance company takes half of the risk! So everyone is happy again **
**, ** Win Win Situation **,GHD Leopard Grain! ** CDS ** also emulate the red! **
** However, this does not end the story: **
** Wall Street for **'** beautiful **'** who came up with based on innovative products ** CDS ** ! **
** Looking because more general investing public with commitment, we imagine ** CDS ** has brought us **
50 ** billion revenue, **
** Now my new publish of a fund, the fund is charted to buy investments ** CDS **'s, **
** Obviously, this range of products built on top of the fund before the risk is very high, **
** But before I make the ** 50 ** billion investment as margin, **
** If this loss of funds occurs, then the first with this ** 50 ** million advance, **
** Only ** 50 ** billion wastage this namely over, you will begin principal investment losses, **
** And ahead that, you can redeem, and the first to raise the scale of ** 500 ** million. **
** My God, there are also cool than this fund? **
** 1 ** yuan face merit to buy the fund deficit to 10% ** ** will not lose their money, they earned every penny
their own! **
** Rating Agencies ** planning to see this genius is simply not hesitate: ** AAA
** rating given! **
** Result, the Fund may sell lunatic, a heap of retirement funds, teaching funds, financial productions, **
** and even additional countries, banks have to buy. **
** Although the scale is planned to raise the first time ** 500 ** million, **
** billion, but the number of follow-up issue, simply has been incapable to estimate, **
* * ** 50 ** billion but the margin has not changed. **
** ** 5000 ** if the existing scale billion, and that bond funds can only guarantee that no loss to the principal value of the ** 1% **
will not only lose money, **
** ie increasing the probability of a loss. **
** ** When the time reached the end of 2006 **, 5 ** ** landscape for a whole year from
altitude U.S. real estate finally fell off heavily, **
** This food chain is also finally beginning to fracture. **
** Because of falling house costs, borrowing rates after the time restrict to, **
** First, ordinary people can not refund the loan, **
** A jiong loan companies and closed down, ** substantial loss of hedge funds
**, **
** ** AIG ** then tugged insurance companies and loan bank, Citigroup, JP Morgan reported mammoth losses have been released
report, **
** At the same time the major hedge fund investment investment banks have losses, **
** then the stock mart crash, people generally lose money, **
** people who can not repay loans continue to boost, * *
** end, the United States ** Subprime Crisis ** broke out close to a ** Prime Crisis **. **
** Credit Crunch ** open the gate to perdition, do not understand how to close the ** ... ... ** *
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