The global economic crisis which was started in early 2006

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1) The Global Economic Crisis which was started in early 2006 and got worse in 2007 and 2008. The main cause of this crisis is the Mortgage securitization and resecuritization. this process in theory is legal and nothing wrong with it , because it provided more funding for U.S home purchasers, and allowed risk to be shifted to this best able to bear it. But this process got very complicated and created what we call the Dark Side of Securitization that ended in Sub-prime meltdown to Liquidity crises to Economic Crisis. Briefly describe some of the mistakes that participated in the Sub-prime mortgage crisis, and how it contributed to the global economic crisis not only in USA but world wide.At the end of your analysis please draw a time line that shows dates of the beginning of defaulting mortgage companies followed by financial institutions and big corporations.Your effort will be evaluated based on the following criteria:

  • Use of analytical concepts to analyze the problem
  • Degree to which information was sought and attained

 

Reference no: EM13390379

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