http://www.free-powerpoint-templates-design.com Global Financial Crisis 2008-2009
ECONOMIC CRISIS
Subprime Loan loan offered at a rate above prime to individuals For who do not qualify for prime-rate loans. they have a reasonable chance of defaulting on the debt repayment.
Subprime Loan Before the global financial crisis, packaged together into large pools of loans and sold. false assumption that the majority of the borrowers would still pay their mortgage payments. The thousands of loans made to people who could no longer afford to make the payments after their interest rates adjusted upward ended up defaulting, the pooled mortgage investments went under, and all of this helped to fuel the global financial crisis.
A collateralized debt obligation (CDO) is a complex structured finance product backed by a pool of loans and other assets and sold to institutional investors, derivatives because, as its name implies, its value is derived from another underlying asset.
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26 IMPACT Unemployment reaches 10% in USA, 15% in UK, 21% in Spain, 30% Greece Iceland collapses. Ireland collapses. Bank runs lead to US bailout costing over $ 2 trillion, UK bailout 2 trillion pounds World trade falls by 40% in 2008