BUS-422- Financial Markets
Watch a Fun Brief Summary of the Crisis at www.crisisofcredit.com. Answer the following questions using both in video
other appropriately acknowledged sources from the internet, then answer the following:
1-Discuss the meaning of the main concepts related to mortgage securitization: MBS, CDO, and CDS. Explain their role in the lead up to the global financial crisis (GFC).
2-The following parties are mentioned in the video: households, mortgage brokers, retail (commercial) bankers, investment bankers, investors, insurance companies, the Federal Reserve, credit rating companies. Identify and discuss any errors in the assumptions and behavior of each party.
3-Carefully discuss which party (from b) YOU think got out of the crisis with the least amount of damage, and why? Which party is probably the most affected, and why? Use web based articles and resources to help you determine and support your opinion.