Dusseldorf Exchange

“The brokers, securities traders and analysts on the stock exchange of Dusseldorf have chosen the exchanges word of the year for the seventh time: with a large majority, subprime was in 2007” determined. “Dusseldorf, January 15, 2008 – the term subprime” appears initially innocuous. Because literally translated says subprime”just out, that is somewhat below (sub”) of high quality (prime”) is. He easily recalls a delicious American Prime Rib Steak. Unfortunately the global finance market 2007 swallowed itself violently on sub-prime mortgage: because the stock market Word 2007 is a massively misleading term referring to the inferior quality of sold investment products. The failures of individual US real estate financier appeared harmless at the beginning of the year 2007.

“However, a closer look would have can open already there, that financial institutions around the world apparently completely illiterate with subprime” actually junk from the lowest shelf towers laden with risks had shopped. The result This amazing carelessness is known: massive write-downs and one of the biggest crises of confidence in the international financial markets. Those subprime borrowers are actually “mortgage loan especially homeowners with low incomes, who took money in a period of low interest rates.” As usual, in the United States it agreed to variable interest rates. So far so good. To refinance the loans packaged beautifully, by credit rating agencies with the best grade of triple A”reviewed and sold worldwide. Encouraging trade with this US debt worked, because there was no shortage of investors who were looking for higher yields, as they gave the usual market. With rising interest rates and at the same time falling real estate prices, but gradually more and more these loans were to become distressed.

Too long, banks with the re-pricing of risks were waiting in their books. Were the consecutive rows risk managers and Board members fired, write-downs worth billions of dollars had to be coped with. The impacts on the Movements not of course was on the exchanges. Unfortunately, it is expected that the sub-prime mortgage crisis leaves other traces in the financial statements of the financial houses and is therefore already not yet finished. The stock exchange word of the year”is determined by the Dusseldorf Stock Exchange based on the sprachkritische action of the Frankfurt Germanists of Prof. Dr. Horst Dieter Schlosser. To the word of the year”, whose jury chose the term cooker reward this year”, because the word diffamiere parents, especially women, who educate their children at home, rather than a creche to take advantage.