1. Describe the financial crisis in 2008. When describing, you need to explain subprime mortgages and mortgage backed securities (MBS) and why they could thrive for more than a decade. Depict the roles of home buyers, mortgage bankers, MBS investors, investment banks, insurance companies, credit rating agencies, etc.
2. Finally, explain why derivatives such as CDOs and CDSs had such a destructive power that results in a total financial market meltdown, not only in United States, but worldwide.