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Analysis
Greed, economic inflation & stagnation
Where is the money going!
America’s biggest bank, Citigroup, made its biggest loss in its 196-year history. In the last quarter of 2007 alone, it wrote down $US18.1 billion, more than twice the current NZ govt surplus.
Subprime is when a salesmen offers a bank a security with exposure to the US property market. The offer looks safe but it is a loan for someone without stable income.
We know that UK, France, Germany and even Switzerland and Chinese banks bought the offers as the biggest financial international bankers.
The investment bundles are toxic and the link to the US property was intended so was the global marketing. The consequence was property bubble in the USA that everyone must pay for, gobally, like terror. Even banks that say they do not have them; say it because they hold them off balance sheet in hedge funds. So everyone exposed.
Fears they form part of pension.
Shareholders impoverished; We will keep hemorrhaging blood equal to losses in the US property market plus interest!
Yes, the USA is lossing, but every one as well. Decoupling or hegmoey!
Greed, economic inflation & stagnation