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FLOATING AROUND IN THE WORLD”S BANKING SYSTEM. WHEN HOUSING PRICES WERE GOING UP,

WHICH IS THEN REPEATED OVER AND OVER UNTIL, THERE IS LITERALLY QUADRILLIONS OF DERIVATIVES 

THESE CREDIT DERIVATIVES CAN THEN BE REPACKAGED AND LEVERAGED AGAIN. AT ANOTHER ONE to 100 RATIO

TO INVESTORS ON THE GLOBAL MARKET.

WHEN MORTGAGES ARE REPACKAGE WITH OTHER MORTGAGES IN A GIANT POOL OF LIQUIDITY. WHICH ARE SOLD 

RISK BY SELLING THEIR LOAN PORTFOLIOS TO INVESTORS IN A PROCESS KNOWN AS SECURITIZATION THIS OCCURS

SINCE MANY OF THESE LOANS WERE MADE TO RISKY LOW-INCOME HOUSEHOLDS, THE BANKS DEFERRED THEIR 

THIS EASY MONEY ALLOWED ANYONE TO GET A HOME LOAN RESULTING IN THE HOUSING SECTOR BOOM.

DURING THE CLINTON YEARS THE BANKING 1 TO 10 FRACTIONAL RESERVE RATIO, WAS INCREASED TO ONE TO ONE HUNDRED. 

WITH J.P. MORGAN LEADING THE PACK, WITH HUNDREDS OF TRILLIONS OF DOLLARS OF DERIVATIVES.