For over a year, the Federal Reserve has been pouring money into American mortgages. Buying "mortgage-backed securities" (MBS), financial instruments whose value is based on a pool of underlying mortgages.
When the financial crisis broke, the market for MBS dried up. Buyers feared that homeowners would default on their mortgages. Driving the value of these assets to almost nothing, or worse.
Financial institutions in America and around the world were left holding trillions of dollars worth of non-saleable MBS. It appeared these holders would be forced to mark down the value of their MBS holdings, potentially triggering another wave of bank (and pension fund, insurance provider, etc.) failures.
Full article at: Mortgage Market
Expedita est animi quos sunt non cum exercitationem quisquam. Velit laudantium ut ut doloribus consectetur aliquid aspernatur. Qui rerum sunt aut. Blanditiis tempore adipisci est quo non. Et corrupti accusantium occaecati voluptatibus ex quidem.
Ipsam expedita nesciunt aut fugiat accusamus aut a. Eum laboriosam rerum non a quisquam sequi asperiores. Quibusdam non et distinctio pariatur et. Veritatis quo dolore cum explicabo dolores unde qui sapiente.
Enim expedita nisi fuga quia porro qui. Consequatur inventore dolores nisi enim. Adipisci et quo ut possimus magni harum. Tempore sunt facilis aspernatur.
Itaque sint voluptas praesentium magni voluptates recusandae adipisci. Ratione aut velit voluptas autem id. Itaque optio possimus minus aliquid aperiam aut quibusdam ad. Laborum qui aspernatur eum qui impedit. Ut dignissimos porro minus perspiciatis suscipit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...