The Problem Of Global Financial Crisis

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“Securitisation is the process whereby loans, receivables and other financial assets are pooled together, with their cash flows or economic values redirected support payments on related securities.” “Securitization first emerged in the 1970s with the sale of securities backed by residential mortIn the 21st century, economic problems have incurred an increasing number of people 's attention as the economic develop rapidly, and these problems are usually caused by human themselves. For instance, the occurrence of Global Financial Crisis (GFC) in 2007 was induced by people themselves who expect that the economic level could be constantly maintained in the impractically high position, but there are lots of issues caused by such high level of economy. Even though the whole world economy is trying to recover from the Global Financial Crisis, but it still has some propagation effect to other countries until now. There are many factors could cause the Global Financial Crisis, impractically high economic level is one reason that is mentioned previously, and another primary reason of Global Financial Crisis is the securitization. “Securitisation is the process whereby loans, receivables and other financial assets are pooled together, with their cash flows or economic values redirected support payments on related securities.” “Securitization first emerged in the 1970s with the sale of securities backed by residential mortgages”. (Dov Solomon, 2012) The narrow sense of securitisation
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