Subprime mortages and Globalization

Take a look at Worst crisis for 20 years, say banks from the Times of London. The article trips over globalization even the subject is not globalization.

Another senior executive of one of Britain’s top five retail banks said: “These are the worst conditions I have seen in money markets for 20 years”.

The huge amount of commercial paper becoming due is the hangover from the crisis in credit markets that began with American sub-prime mortgages. Many of the off-balance-sheet structured investment vehicles (SIVs) set up by the banks were borrowed in the form of asset-backed commercial paper.