GGRA02H3 Lecture Notes - Lecture 8: Jobless Recovery, Investment, Investment Banking
Document Summary
It would appear that there are great many fashion victims, all connected by the invisible threads binding this global system of garment design, production, retail, consumption and wear . Normal mortgages typically include a sizable down payment and a five year fixed interest rate. Subprime mortgages include very small down payments and a lower teaser rate which is then adjusted upwards after two years. This is meant to attract marginal buyers/ borrowers. More often not led to bankruptcies as borrowers cannot meet escalated payments. Mortgages are more complex documents which make it difficult to establish the terms of a mortgage (no one really knows what is under the terms of their mortgages, they just know they have one. Unless you are the bank or a lawyer, you understand these terms) Securities can be held, sold, or becomes assets against which more money can be borrowed and then re-invested.
