How mortgage contributed to the global economic crisis

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Question - Assume that you recently finished your second-year studies in the corporate management field and have just reported to work as an investment strategist at the brokerage firm of Darwin Entertainment Services (DES). One of the firm's clients is Karen Diet, a professional designer who has just come to the Australia from Europe. Karen Diet celebrated her 26th birthday with a lotto ticket that turned out to be a gift worth millions of dollars. She would like to start a company to produce and market apparel she designs for the entertainment industry and later invest in real estate. Diet has overheard that in real estate investments, mortgage securitisation could have a negative impact to the financial market. Your boss has developed the following set of questions you must answer (task for this assessment item) to explain the financial system to Karen Diet before she signs a contract with DES. The structure of the report should be appropriate to your audience, include an executive summary and address each of the following questions:

Demonstrate to Karen Diet how mortgage securitisation has contributed to the global economic crisis.

Reference no: EM132178165

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