Business, 17.10.2019 18:00 soniah

Explain how each of the following relates to the financial crisis of 2007–2008:
 declines in real-estate values.
 subprime mortgage loans.
 mortgage-backed securities.

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Prior to the 2007 and 2008 financial crisis the banking institutions issued a large number of loans to borrowers that were relatively more risky in the sense that these borrowers were more likely to default on their loans. This was referred to as the subprime market. This resulted in a rapid increase in home prices (along with housing market speculation) that was unsustainable (sometimes referred to as bubble). This problems was also exacerbated by the issuance of mortgage backed securities, which bundled riskier mortgages together, and sold them to investors. In theory, this reduced the risk exposure that banks faced after issuing these loans. This apparent reduction in risk was an accounting illusion since the banks also made loans to the groups purchasing the mortgage backed securities.

When housing prices started to decline and individuals started to default on their mortgages this reduced or completely eliminated the value of these mortgage backed securities. This caused the financial investors who held these securities. Thus, there was a major credit crunch as banks wrote off the bad loans

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Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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Explain how each of the following relates to the financial crisis of 2007–2008:
 declines in...

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