Suchergebnisse

Discusses what problems were present in the world economy on a macro and a micro level, how it resulted in the financial crisis and how the authorities were trying to intervene in order to stabilize the situation. On the macroeconomic level Americans bought cheep Asian goods while printing a lot of money, but inflation was kept at bay since the money was sent to Asia. The circle was complete when Americans lent the money back from Asia and speculated with it. On the microeconomic level structured investment vehicles (SIVs) and asset backed commercial paper (ABCP) created problems especially when they were combined with collateralized debt obligations (CDOs) and mortgage-backed securities (MBS). The boom turned into bust after 2006 when there were not enough house buyers left. L. Pitkaniemi