2007+10

File: janet-yellen.jpg (83KB, 1921x1441px) Image search: [Google]

83KB, 1921x1441px

I WATCHED THE BIG SHORT

File: mylittle.jpg (14KB, 425x223px)

14KB, 425x223px

>>1914487
mmmmm

File: snapcity4.gif (2MB, 320x240px) Image search: [Google]

2MB, 320x240px

>>1914439
Mortgage backed securities are like a cake. Except the cake is made of contracts that say that you are entitled to x amount of money every y months.

The next thing is a CDS aka credit default swap. It is an instrument that works like insurance on securities with credit risk. You pay z amount of money every now and then and get insured incase the underlying security defaults.

CDS are issued by a financial institution aka lehman bros.

Now the MBS had sub par mortgages in them aka poor people who couldnt pay out theit mortgage.

Problem was that the banks issuing the CDS were doing so by investing in MBS.

One fails everything fails. You know the rest

>>1914496
Why is there no Yellen Pepe? I envision a smug pepe yellen with a value representing interest rate hikes, along with a graph of the SP 500 crashing, in the background.

>>1915262
yepe

File: 1360153239800.jpg (20KB, 391x411px) Image search: [Google]

20KB, 391x411px

>>1914487
S U B P R I M E