Starting from the problems of failure to pay housing loans (subprime mortgage defaults) in the United States (U.S.), then bubbled damaging crisis banking system not only in America but expanded to Europe and to Asia. Successive causes a domino effect of the solvency and liquidity of financial institutions in these countries, which among others led to the bankruptcy of hundreds of banks, securities firms, mutual funds, pension funds and insurance. The crisis then spread to parts of Asia, especially countries such as Japan, Korea, China, Singapore, Hong Kong, Malaysia, Thailand, including Indonesia, which happens to have long had precious letters these companies.
Of the various criticisms of the experts, that the problem was triggered rampant price manipulation in the U.S. housing policies encouraged U.S. Federal Reserve (the Fed) are less pruden to stabilize the financial system since many years. This condition is motivated by a desire to maintain the demand for residential properties to remain high, then banks in the United States a lot of housing loans disbursed primarily for those in low income who do not have adequate financial capacity (ninja loan is a loan against the customer who no income, no job , & no assets). This housing credit and a hybrid disekuritisasi to make it more attractive to investors consisting of banks, securities firms, mutual funds, pension funds and insurance. Unfortunately, a lot of unpaid loans in large numbers and equitable. As a result, banks and the difficulties to pay investors quickly withdraw cash from banking products while prices are still high that this tie up the velocity of money in the mortgage market. This causes the structure of product markets are interrelated with each other to be disturbed. Bonds, including debt (debt obligation collaterlaised / cdo) as forms of collective investment of the sub-prime mortgage.
Lehman Brothers announced a gradual loss before bankruptcy. On June 16, 2008, the company announced losses worth 2.8 billion U.S. dollars for the second half of 2008. Followed by a loss of 3.9 billion dollars in the third half of 2008 (September 10) and resulted in bankruptcy announcement on September 15, 2008. A similar shock is almost the same experienced by Merryl Linch, Citigroup, AIG and various other large financial institutions.
This reflects the weakening of the real sector with the bankruptcy of major U.S. companies like General Motors, Ford, and Chrysler that threaten...