4.4 SUBPRIME MODEL OF MORTGAGE LENDING
Figure 4.1 describes the primary parties in the subprime housing market in the situation where
mortgage-backed securities are created by investment banks and sold to investors.
4.4.1 Contributing Events to the Credit Crisis
To gain a clear understanding of the interrelationship of the events embroiled in the crisis it
is important to find a “window” through which to gain a clear perspective. The perspective
selected is based on a number of interlinked “vicious circles” some of which have been