The Crisis of Credit
The Credit Crisis
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Worldwide financial fiasco involving sub-prime mortgages, collateralized debt
obligations, frozen credit markets, and credit default swaps
Who is affected?
EVERYONE
How did it happen?
Two groups of people together.
Homeowners represent their mortgages which represent houses
Investors represent their money which represents large institutions (pension funds, insurance
companies, sovereign funds, mutual funds, etc.)
These groups were brought together. A bunch of banks and brokers commonly known as Wall
Street which are connected to the houses.
History
Investors sitting on their money.