十分鐘看懂次貸危機

1、PPT模板下載： WHAT IS THE CREDIT CRISIS?It is a worldwide financial fiasco involving terms you may probably heard like sub-prime mortgages,collateralized debt obligation,forzen credit markets,credit default swaps.Who is affected?EVERYONE!HOW DID IT HAPPEN?HOME OWNERSINVESTORSMortgagesmoneyHousesLarge Ins

2、titutionThese groups are brought together through the financial systema brunch of banks and brokers commonly known as wall street.THE LOW INTERESTOne percent is a very low return on investment,so the investors say“no thanks”.ON THE FLIP SIDEOn the flip side,this means banks on wall street can borrow

3、 from Fed for only 1%,add to that general surpluses from Jpan,China,and Middle East,and there is an abundance of cheap credit.LEVERAGEThis make borrowing money easy for banks and cause them to go crazy with LEVERAGE.Here is how it works!A NORMAL DEALsomeone with 10 thousand dollars buy a box for 100

4、00 dollarsHe then sells it to someone else for 11000 dollarsFor 1000 dollars profits,a good deal.USING LEVERAGEBut using leverage,someone with 10000 dollars would go borrow 990000 more dollars,giving hin one million dollars in hand.USING LEVERAGEThen he goes and buy 100 boxes with his one million do

5、llars and sells them to someone else for 1100000 dollars.Then he pays back his 990000plus 10000 in interest and after his initial 10000,he is left with 90000 dollar profit verse the other guys 1000CONNECT INVESTORS TO THE HOME OWNERSA family want a house,so they save for a down payment.And contact a

6、 mortgage broker.The mortgage broker connects the family to a lender who gives them mortgages.The broker makes a nice commission.The family buys a house and becomes home owners.This is great for them because housing prices has been rising practically forever.BUT ONE DAYOne day,the lander gets s call

7、 from an investment banker who wants to buy the mortgages.The lender sells it to him for a very nice feeLEVERAGEThe investment banker then borrows millions of dollars an buys thousands more mortgages and put them into a nice little box.This means that every month he he gets payments from the home ow

8、ners of all the mortgages in the box.THE CDOThen he cut the box into three slices safe,okay and risky.A CDO works like three cascading trays ,as money comes in,the top tray fills frist then spills into the middle and whatever is left into the bottom.The money comes from home owners paying off their

9、mortgages,if some owners dont pay and default on their mortgage,less money comes in and the bottom tray may not get filled.This makes the bottom tray riskier and the top tray safer.This is CDO.The banks do all of this work so that credit rating agencies will stamp the top slice as a safe,triple A ra

10、ted investmentthe highest safest rating .The okay slice is triple Bstill pretty good.And they dont bother to rate the risky slice.He sells the okay slice to other bankers and the risky slices to hedge funds and other risk takers.The investment banker makes millions.He then repays his loans.WHAT ABOU

11、T THE INVESTORSFinally,the investors have found a good investment for their money,much better than the 1% treasury bills.They are so pleased,they want more CDO slices.So the investment banker calls up the lender wanting more mortgages.The lender calls up the broker for more home owners.But the broke

12、r cant find anyone.Everyone that qualifies for a mortgages already has one,but they have an idea.AN NEW IDEAWhen home owners default on their mortgage,the lender gets the house and houses are always increasing in value.Since theyre covered if the home owners default.Lender can start adding risk to n

13、ew mortgages.Not requiring down payments ,no proof of income no documents at all.They started to get some that were.well ,less responsible.These are Sub-Prime MortgagesWORKS AS USUALJust like always,the mortgage broker connects the family with a lender, making his commission.The family buys a big ho

14、use.The lender sells the mortgages to the investment banker who turns it to CDO and sells slices to the investors and others.This actually works out nicely for everyone and makes them all rich!THE TURNING POINTNo surprisingly the home owners default on their mortgage which at this moment is owned by

15、 the banker.One of his monthly payments turns into a house.No big deal,he puts it up for sell.But more and more of his monthly payments turn into houses.SUPPLY&DEMANDNow,there are so many house for sell on the market creating more supply.This creates an interesting problem for the home owners st

16、ill paying their mortgages.As all the houses in their neighborhood go up for sale,the value of their house goes down.And they start to why they are paying back their 300000dollars mortgages when the house is now worth only 90000 dollars.So,they walk away from their house,default rates sweep the country .BOMB!He knows the stream of money isnt even adribble any moreThe banker trys to sell to everyone,but nobody wants to b