Many people in the United States can't buy a house because they have a poor reputation in the bank, and the bank won't lend them money. But when the property is good, the bank thinks it is safer to lend to these people, because even if these people don't repay the loan at that time, the bank can still auction their house to make up the bill, so many banks lend to these people, but the more bank loans, the less money he can invest. So he packaged these loans into bonds, which are high-interest bonds in the form of transactions (the interest received by buyers is the interest received by banks from these homeowners). These bonds look delicious, so they have become the portfolios of many funds and investment banks. Banks rely on "Fannie Mae and Freddie Mac" (which will take over in February). The process is that "Fannie Mae" first buys the bank's debt, and then he packages these debts before lending. The bank sells the debt before lending, and then asks Fannie Mae to issue bonds. This cycle is basically a loan of 65438+.
So we can say that banks sold a lot of risks to Fannie Mae and Freddie Mac, and Fannie Mae and Freddie Mac not only held some of them, but also sold many of them to many investment banks as their investment portfolios.
That's why all the investment banks have closed down. Although banks still suffered some losses, all the bad debts were swallowed up by investment banks. As for Fannie Mae and Freddie Mac, because they are too big, February will not let them down.