They package these mortgage assets into bonds (that is, we often say subprime bonds) and sell them to major investment banks, banks and sovereign funds in other countries, which is equivalent to letting the world provide loans to American homeowners. If these two go bankrupt, I estimate that one and a half financial institutions around the world will go bankrupt, because all the subprime bonds they buy. China's foreign exchange reserves alone bought $2 billion in subprime bonds.