"The U.S. subprime mortgage crisis," the whole interpretation.

Editor's Note】 【<P> </ P> <P>: http://finance. Hearing, what is the subprime crisis: </ P> <P> in the United States, different credit ratings for banks or loans in .institutions enjoy different loan lending rates. .Credit rating higher than 660 lenders, you can enjoy the preferential interest rates. .The U.S. federal funds rate to 5.25%, banks or lending institutions generally offer interest rates of 8.25%. .Credit rating lower than 660 lenders, had to accept relatively high interest rates. .In the mortgage market, this relatively high interest rates is known as subprime loans or subprime mortgages. .Subprime mortgage interest rates are usually 2-3 percentage points higher than the prime rate. .</ P> <P> U.S. mortgage securities market operation mechanism: </ P> <P> in the U.S., personal loans to mortgage companies who are not directly apply for a mortgage to the bank. .Mortgage loans mortgage company will be sold to commercial banks or investment banks. .Bank mortgages repackaged into mortgage securities that were sold to buy mortgage-backed securities to investors, transfer of risk. .Meanwhile, the bank will sign an agreement with the mortgage company, requiring individual mortgage lenders in case of loan default, repurchase mortgage loans. .Bank will buy some credit default swaps, equivalent to the purchase of a rise in mortgage defaults against the "insurance" to further diversify their risk. .</ P> <P> period of almost everyone to make money: </ P> <P> 2001-2004, the Federal Reserve policy of low interest rates to stimulate the real estate development, the American surge in the purchase of enthusiasm, as easy to get .of the secondary mortgage market, an unprecedented popular. .During this period, the chain will benefit most people, the benefits of securitization of mortgage loans on real estate value-added benefits that can be allocated to more people. .Mortgage company profits from the sale of mortgage loans to the bank, the bank's profits from the sale of mortgage securities, mortgage-backed securities buyers, and buyers of mortgage-backed securities will enjoy more than to buy more government bonds or investment-grade bonds .high returns. .This does not include indirect involvement of investors, including the purchase of mortgage company or bank stock investors. .The only possibility of a loss are those in the credit default swap market will rise in mortgage defaults bet the people. .</ P> <P> almost everyone lost money during the: </ P> <P> marked decline in the U.S. housing boom is the root cause of subprime problems. .Loan defaults increasing, more than U.S. bogged down in the secondary market lenders bad debt crisis. .March 13, 2007, the U.S. Mortgage Bankers Association released a report, the subprime mortgage market crisis. .The news of falling U.S. stock market overall. .U.S. stock market panic spread to Asian markets soon. .April 2, 2007, the largest U.S. subprime issuers in the New Century filed for bankruptcy protection, marking the U.S. subprime mortgage market crisis. .</ P> <P> possible solutions: </ P> <P> 3 15 March, former Federal Reserve Chairman Alan Greenspan said that unless the U.S. housing prices continue to drop, or the U.S. subprime mortgage risk is unlikely .affected the overall U.S. economy. .Reading from a different angle, meaning Greenspan said the U.S. housing prices can not fall any further, or other economic sectors will be affected. ."I think it is important that a clear understanding of what we are dealing with, this is more a problem of housing prices, rather than mortgage credit problems." Is Greenspan has suggested using the old methods pull in the market a hand? .</ P> <P> 3 月 21 U.S. Federal Reserve monetary policy meeting statement cancel since August 2006 has been adopted to stop raising interest rates "further tightening," the wording, replacing "future policy adjustments" that .more neutral language. .The market interpreted the Fed to cut interest rates officially opened the door. .Although the March 28 Federal Reserve Chairman Ben Bernanke is now the Joint Economic Committee in the House and Senate, testified that the wording of the change does not necessarily mean that interest rate cuts, and has repeatedly played down the threat of the subprime mortgage crisis, but many observers believe that .This is the performance of trying to hide something. .</ P>.