Vol. 7 No. 11 (2009): Latin American Journal of Economic Development No. 11
The explosion of the bubble of the companies "dot com" between 2000 and 2002, along with the attack of Al-Qaeda against the towers of the World Trade Center generated great uncertainty in the investment markets, phenomenon that resulted in a flight of investment capital to real estate. The Federal Reserve of the United States initiated a policy of reducing interest rates with the aim of reversing the technological recession and uncertainty. The cheap money policies led to an increase in subprime loans that resulted in risk derivation mechanisms, infecting Investment Funds, Hedge Funds and Pension Funds. In September of last year the financial crisis, the stock market crashes and the obvious symptoms of a recessive process pushed the search for millionaire rescue plans that are apparently insufficient to face the problem.
Published:
2009-04-01
