| Summary: | 碩士 === 銘傳大學 === 經濟學系碩士在職專班 === 97 === American Subprime mortgage Problem and Its Impact
Student：Pei-Ling Lien Advisor：Dr. Chao-Hsiung Lin
Abstract
Since 2007 the problem of American subprime mortgage has become a contagious disease damaging the world’s economy through those financial derivatives including Residential Mortgage-Backed Securities (RMBS), Collateralized Debt Obligation (CDO) and Credit Default Swap (CDS). While investors of those derivatives can be shown to spread all over mutual funds, hedging funds, large banks and large insurance companies, the loss can be far-reaching. After the surge of this subprime mortgage problem many national governments have made strong intervention actions such as lowering interest rates and reserve ratios, certifying deposits and debts in the bank, holding global financial crisis summit and so on in order to avoid the trouble of credit crunch and economic recession. However, the problem has yet been subsided and the world’s economy is currently facing the most severe difficulty after 1930. By inspecting the cause and its impact of this American subprime mortgage problem based on the facet of securitization, major opinions from this study can be summarized as in the followings. On one hand, the American economy is deeply affected by its subprime mortgage problem, and this, in turn, causes nose dives of stock markets and huge depreciation around the world. On the other hand, it becomes urgent necessary to reconstruct the global financial system especially with an early warning mechanism.
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