The Crisis of Credit Visualized - Part 1

The picture seems more clear now.
Thanks. Now I understand why it unfluences us in Europe so much.
We live in a small world .

Great video, it really hits the point. Thank you!

Great work, Mr.Jarvis, my favourite video on youtube!

ing.
So take the opportunity.

The only way I could think of that the investment banker will benefit is if he raises the interest to a percent that will give him more than the amount the mortgage did cost for him, but can he really do that?

There's one thing I don't quite understand...

Let's say the lender will get 100 000$ from the family through mortgage, then the investment banker buys this mortgage, in which way does it profit any of them?

If the investment banker buys the mortgage(s) for 90 000$, the lender obviously loses money. If he buys the mortgage(s) for 110 000$, will he not lose in that case? he get's 100 000$ from the families and loses 10 000$ with every purchased mortgage?

The investment banker (using your example) would buy it for 110,000. He then packages it up into smaller sales. Say he sells it in three pieces for 40,000 a piece. He then makes 10,000 total.

The investors that bought the packaged mortgages now make interest basically off of the interest the home owner is paying.

So the investors that bought them can raise the interest of these "mortgage fractions"?

thanks for your answer!

anything that sells...