was it the wrong and agressive use of derivative instruments that led to the f

was it the wrong and agressive use of derivative
instruments that led to the financial crisis in the us and
the world over?

Question Posted / ravis maqbool

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was it the wrong and agressive use of derivative instruments that led to the financial crisis in t..

Answer / aditya ratnam

The exact answer to this is MBS and CDO.

MBS = Mortgage based securities.

CDO = collateralized Debt Obligation.

You can read the full Crisis story on wikipedia under the heading 'subprime mortgage crisis'

Regards.

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was it the wrong and agressive use of derivative instruments that led to the financial crisis in t..

Answer / raghs

The aggressive use of fancy derivative instrument was just
one of the compositions of the crisis, where as us is known
to have highest composition in fixed income instruments, the
liquidity crunch, stagflation which led to fall in the
realestate and excess belonging on external sources led to
fall in overall GDP. and took the world with it

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