Professional Documents
Culture Documents
INDIA
SUBPRIME LANDING
RATE?
1
Investors buy
lots of
mortgaged
backed
securities
...with very high fees
Real estate soars 10 – 20%
from 2002 - 2006
Building up of the housing bubble
Home owners
spend like
celebs using
Home Equity
Loans
BUT…….
5.25
Adjustable Rate Mortgages
increase with interest rates
Home
Owners
can't pay
their
mortgages
Home owners are forced out of their homes
When SUB-PRIME holders unable to repay
their loan, major banks who has shows losses in
their balance sheet, file for Bankruptancy or got
nationalized.
Argentina:
Heavy job losses,
higher import tariffs
and weaker Peso
Credit Crunch:
Is it only in the United States?
Europe - European banks have lost more money than
American banks due to investments in the U.S.
mortgage market.
Government stepping in to bail out banks from
‘going under’ in Denmark and U.K.
Threat of recession in Irish Republic and Spain
France, Germany, Italy and Portugal follow suit…
Iceland is all but officially bankrupt
Alternate
investment
saw a surge
Impact on Crude Oil