In order to alleviate various economic problems caused by the subprime mortgage crisis and the credit crunch, and stabilize the financial market, the Federal Reserve has greatly reduced the federal funds rate in recent months, and has broken the routine to provide direct loans and other financing channels for financial institutions such as investment banks. The US * * * also approved an economic plan costing more than US$ 654.38+050 billion, relaxing the financing and reserve limit of financial institutions such as Fannie Mae and Freddie Mac (the two largest mortgage companies in the United States).
On September 7, 2008, the US Treasury Department announced that it would take over Fannie Mae and Freddie Mac, which were on the verge of bankruptcy, and it might cost as much as $200 billion. [
The credit crisis is the same as 1. Reference: bank loan information-free consultation and evaluation [* * *]-
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. Myblog.yahoo/beauty-within, reference:. The subprime mortgage crisis in myblog.yahoo/beauty-within, (also known as subprime mortgage storm, subprime mortgage storm, Fannie Mae and Freddie Mac crisis) refers to the shock, panic and crisis in the international financial market caused by the sharp increase in default rate of the American subprime mortgage industry and the credit crunch in the summer of 2007.
In order to alleviate various economic problems caused by the subprime mortgage crisis and the credit crunch, and stabilize the financial market, the Federal Reserve has greatly reduced the federal funds rate in recent months, and has broken the routine to provide direct loans and other financing channels for financial institutions such as investment banks. The US * * * also approved an economic plan costing more than US$ 654.38+050 billion, relaxing the financing and reserve limit of financial institutions such as Fannie Mae and Freddie Mac (the two largest mortgage companies in the United States).
On September 7, 2008, the US Treasury Department announced that it would take over Fannie Mae and Freddie Mac, which were on the verge of bankruptcy, and it might cost as much as $200 billion.
Source subprime mortgage refers to loans provided by some lending institutions to borrowers with poor credit and low income. In recent years, the United States and other countries have relaxed housing credit standards (no down payment, no proof of income, no concern about the quality of mortgage units, etc.). ), forming a subprime mortgage market. Sub-prime housing credit is estimated, combined and packaged by lending institutions and Wall Street by financial engineering methods, and then sold in the secondary mortgage market in the form of bills or securities products, attracting other financial institutions and hedge funds to buy at high interest rates.
However, the good times did not last long. In 2006, the US real estate market began to deteriorate, and the interest rate of the US dollar increased many times, which led to the increase of credit default and bad debts of subprime loans, and the price of subprime products plummeted, which directly led to the financial crisis and even bankruptcy of many financial institutions in Europe, America and Australia, which affected the global credit contraction. In order to cope with the large-scale redemption tide of customers, it is no longer feasible for some funds to close their positions in yen and invest heavily. The only way is to sell cash, that is, the so-called yen carry trade to open positions, which has caused a series of domino effects and led to a sharp drop in global stock markets. [3]
Fannie Mae and Freddie Mac, which originally accounted for 70% of the US subprime mortgage market, were led by * * * institutions, packaged loans into securities and promised investors to get principal and interest rates. With the scandal of these two companies, * * * limited their business growth, and the whole subprime mortgage market began to compete for the loans purchased by these two companies. In the whole process, new market participants excessively pursue high-risk loans for profit-seeking purposes. When Fannie Mae and Freddie Mac still dominate the mortgage market, they usually set clear loan standards and strictly stipulate what types of loans can be issued. Today, due to the intervention of thousands of hedge funds, pension funds and other fund investors with high risk preferences around the world, the original loan standard has become a dead letter in the face of high interest rates, and new market participants and Wall Street traders continue to encourage lending institutions to try different types of loans. Many lenders don't even require subprime borrowers to provide proof of financial qualifications, including tax bills. When evaluating the value of houses, lenders also rely more on mechanical computer programs than the conclusions of appraisers, and the potential risks are deeply buried in the subprime mortgage market.
In recent years, the Federal Reserve has raised interest rates by 17 times, and the federal funds rate has increased from 1% to 5.25%. Interest rates rose sharply, increasing the repayment burden of buyers, and the US housing market began to cool down sharply. As a result, many borrowers in the subprime mortgage market cannot repay their loans on time, which makes it difficult for buyers to sell their houses or obtain financing through mortgages. As a result, the credit of ordinary residents decreased, and the evaluation price of bonds related to real estate loans fell. Once the value of mortgaged assets shrinks, a crisis will occur and spread to the whole chain. ..
Are "credit crisis" and "subprime crisis" the same as 1? Subprime loan crisis. * * */wiki/% E6 % AC % a 1% E6 % 8c % 89% E5 % 8d % b 1% E6 % A9 % 9f
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