Here is another link fresh off the press showing who does, and who does not get this
Bloomberg.com: News
"The global credit crisis that started with the collapse of U.S. subprime mortgages caused banks worldwide to record $927 billion in writedowns and losses since the start of last year. That prompted financial institutions to freeze lending and sent corporate borrowing costs to records."
Here is a bunch more = enjoy, learning is a great thing! :wink:
Search Results: subprime caused + worldwide
Holy shit you are dense.
1) Sub-prime mortgages defaulted. I am not arguing this.
2) Sub-prime loans are acknowledged to be high risk.
3) Securities based on sub-prime loans should have a lower credit rating than better securities
4) The derivatives market based on these loans was huge, and the derivatives were rated AAA, due to either fraud or ignorance, and the ridiculous belief that housing values would only ever go up.
5) When the market crashed, the value of these derivatives, which were being treated like they were good as cash, took a nosedive, triggering:
6) The failure of banks who did not adequately manage their risk.
My point is that the sub-prime defaults would not have been a good thing, but they were greatly compounded by the voodoo math of the investment banking market. You would not have the massive credit crisis and bank failures without these poor decisions. The market went to shit because of the derivatives market, not the loan defaults.