Who benefited from Sub-prime Mortgage Crisis? Whatever way I think, it seemed the biggest beneficiaries are realtors, mortgage brokers, builders and building industry? They must have got their cut long back? (and might have lost if they had pumped all their income into the market again).
Home owners - Lost their fortune. Their equity sometimes became negative.
Primary lenders - sold off their loans to secondary lenders. (but may have enough sub-prime mortgages in hand that needs to be disposed off)
Secondary lenders - Sitting on those loans which are getting foreclosed. Nobody will be ready to buy white elephants.
Innovative banking firms - who convert everything from baby puke to old mans worn out shirt into securities and traded them enthusiastically.
AIG like firms - invested in such securities
Shareholders- having positions in such firms
Bond holders - based on the company bonds of such companies
Retirement Investments like 401(k) - who invested in instruments having exposure to such companies and worse mortgage based securities themselves.
So, what is lost is a dream I think. Somewhere money is safe. Our optimism about the growth of money is shattered. Well isn't that not recession?
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