Two views on mortgage chaos appeared in the Wall Street Journal yesterday (actually, there are some more, this article needs to know more than anyone, especially about the new century of finance (new)). Now it really seems almost wall-to-wall with borrowing in subprime-more news. The first view of contemporary mortgage leasing comes in this report ($) about the growth difficulties of debt purchased from lenders. What does it draw? A dark picture can move forward in the coming weeks and months.

In 2, the shady class of Wall Street investment tools acted like a motorcycle house to finance the business, which led to growth by absorbing dangerous mortgage bonds and distributing them to investors around the world.

Now, when the mortgage problem comes up, and a series of mortgages are combined with degraded looms, these investments, called mortgage debts, begin to look like a different car-rocket overload and combustible fuel.

Some big investment bank wobbled due to problems, when the new CDO launched in the subprime mortgage market, it was clinched, catering to borrowers who could give at least credit. They buy, making it harder for them to sell and depressing their prices. There are also problems that investors demand high returns in CDOs.

CDOs are an integral part of Wall Street's mortgage dicing and dicing machines. After the mortgage is written, they produce bonds to pay the mortgage guarantee, and the investment banks subscribed by the investment banks merge them together and use cash flow.

The mortgage bonds, on the other hand, are often packaged into CDOs and sold cheaply after slicing. Investors can choose to buy dangerous fragments of bonds or buy slices with less risk.

until now, the credit rating agency has been slow to respond, prompting whether there will be a widespread tightening of credit.

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