Essentially, the sub-prime crisis is caused by the discretion of two rating (risk assessing) mechanisms between underlying property assets and structured products over Securitization and Special Purpose Vehicle (SPV). The agency cost or the commission–driven misconduction of rating agency boosted this bubble until its burst.
The following clipper may tell what happened while amusing you.
http://www.youtube.com/watch?v=SJ_qK4g6ntM
Undeniably, China’ sovereign wealth fund also heavily involved in the game of chasing exotic bubble early of last year. As a mystery, no one exactly knows how big this lesson is. Moreover, even the review can be saved since China is becoming the lee for the formal financial Monsters, Merrill Lynch first, then Citigroup …