So just like always, the mortgage brokerconnects the family with a lender and a mortgage making his commission. Thefamily buys a big house. The lender sells the mortgage to the investmentbanker, who turns it into a CDO, and sells slices to the invest...
Theinvestors see this and want a piece of the action, and this gives Wall Streetan idea. They can connect the investors to the homeowners through mortgages. Hereshow it works. A familywants a house, so they save for a downpayment, and contact the mor...
What isthe credit crisis? Its a worldwide financial fiasco involving terms youve probably heard like sub-primemortgages, collateralized debt obligations, frozen credit markets and creditdefault swaps. Who isaffected? Everyone. How didit happen? Heres...