Americans, whom the world will pay for mistakes.

<P>: Http://finance. News, U.S. subprime mortgage crisis has now bring disaster to the world, which is poor in subprime mortgage securities and global sales after the U.S. subprime mortgage crisis spread to the credit crunch from the property market .the result of the financial markets. .</ P> <P> objectively speaking, a mortgage-backed securities is a financial innovation, there are many advantages: First, it is in the initial mortgage mortgage providers, such as banks or finance companies .create the conditions for rapid turnaround of funds to help more people to buy a house; Second, it secured by mortgages in different parts of the original sale and purchase of surplus and deficiency fund regulation played a role in making the national mortgage interest rates tend to equalization; .Third, it is for investors to create new investment instruments, active in the entire U.S. financial markets. .But the problem is that it effectively to get all the advantages, must have a precondition, that is, the mortgage is backed by reliable, is to be repaid, otherwise it will cause losses of later investors. .If the re-packaging low-quality securities, there are quasi-governmental agencies, it is more deceptive. .The reason why selling subprime mortgages, but also because it has a higher rate of return, so that domestic and foreign investors in droves. .The U.S. subprime crisis will through this channel, bring disaster to the world like a plague. .</ P> <P> 8 months, the first found to be infected in Europe this plague, the German corporate investment bank (IKB) is a problem. .The bank traditionally services for small and medium enterprises, only 1,700 employees, 14 billion euros of capital, but the temptation of high-yield, began to get involved in U.S. subprime mortgage market, buying up to 127 billion euros of subprime mortgage .The results have been locked in losses of more than 2.3 billion euros into the edge of no ability to pay. .German government in the bank's parent company has equity, taking into account if the bank collapsed, will affect other financial institutions, and may trigger a large banking crisis, the German government approval to spend 8.1 billion euros by its parent company to resume its flow .sex. .Many regional banks in Germany because the U.S. subprime mortgage to buy securities of backed into trouble. .</ P> <P> Britain has been the impact of the subprime crisis. .9 months, the UK operation of the Northern Rock sub-prime (northern rock, also known as the Northern Rock Bank) suffered a serious run. .This is because, after Northern Rock announced that the global credit crunch, it has been unable to raise the financial sector from other short-term loans that the Bank of England launched its emergency relief. .This sparked panic. .However, even in the central bank Northern Rock has announced the ability to pay, people still adhere to withdraw deposits. .A 68-year-old customer in the row, after two hours long queue, said: I will not keep this company and then to a penny. .The bank's stock has plunged 55%. .In fact, Northern Rock itself still has a lot of disposable money, but because they do not know when the smooth flow of money market lending to each other, and had to ask the Bank of England emergency. .British Chancellor of the Exchequer 阿利斯特达, said that the bank does not exist on the capacity to pay issues and requirements of our customers do not panic. .He said the British the entire financial system has sufficient funds, all banks have. .However, the risk of U.S. subprime mortgage market, creating uncertainty, which hampers the inter-bank lending, which could have been Northern Rock business model depends on the cornerstone. .</ P> <P> above example illustrates why the U.S. subprime mortgage crisis will impact the world, in addition to low-quality mortgage securities mortgage sales in the world, there are sub-prime crisis triggered by the global financial market crunch, .It affects people's confidence in global financial markets. .This phenomenon occurs not only in Germany and the UK, also spread to France, Canada and Japan and other Asian countries. .</ P> <P> financial globalization is the meaning of the United States can be financed in the global scope, as U.S. consumption and investment services. .The United States to a mortgage-backed securities in the global circulation, the U.S. economist as risk diversification editing software. .However, the subprime crisis impact on global exposed to its negative impact and affect the credibility of U.S. financial markets. .</ P> <P> Disclaimer: This story is purely personal point of view of, only for investors and does not constitute investment advice. .Accordingly investors operate your own risk. .</ P>.