Steps To Follow When Thinking About Buying A Car

Lots of folks absolutely hate the idea of having to shop for a car. Driving a car can be fun, but buying one requires you to spend time finding important information. Follow the advice in the article below to make the best car choices that you can.

Do not let a salesperson sell you a vehicle you can't honestly afford. Frequently, people are talked into purchasing a sports car when the salesperson tells them how good they look in it. This buy auto notes dealer is working for a commission, so your money is his or her money. Stick with what you can afford.

You need to know as much as you can before buying a car. You can get a better deal if you are informed. Saving money by doing a little homework is the best thing you can do before car shopping.

Prior to visiting a dealership, you should have some idea of what kind of vehicle you want. You should do some research online to learn more about different kinds of vehicles before you make your decision. Also, try to lock in a price range that you are willing to spend.

When buying privately, always bring along a mechanic. Think twice about buying a car from someone who refuses to let you do so. This typically means that there are issues they are trying to cover up. You should always know about any preexisting conditions before buying the car.

Bring a friend with you to buy your car. They may hear things you miss and will help make it easier to turn down a deal, should it be an unfavorable one. This company could be your life partner, a best friend or a trusted family member.

Look into the vehicle's safety features. The brakes and suspension are two things to take into account when car shopping. You should also get as many airbags as possible. It is vital that your car is safe.

Most salespeople have monthly quotas they need to meet. They have to sell X number of cars monthly, and knowing this puts you in the proverbial driver's seat. People selling cares that haven't met their quotas are really eager to get you to purchase a car. You can get a lower price as they're more desperate than you are.

Plan to do your car shopping at the month's end. Most salespeople have some monthly quotas to meet and they might try generating more sales during the last week of the month to meet their quotas. If you're shopping near month's end, you may find some fantastic deals. If the dealer has to make his or her numbers, you might be able to sneak out of there with a superb deal.

How much do you have to spend on your car purchase? It is best to know exactly where you stand before you begin looking at cars. Find out what your budget can afford as far as a payment. You need to secure a loan before shopping for cars.

If buying used, ask the dealer to let you take the car to a mechanic. This should be someone you trust. The mechanic should be someone that you hand pick personally. The mechanic will be there to tell you if the car can be on the road and if the price is right.

Read all the paperwork before signing. Don't sign any contract before you read and understand everything it entails. Once you sign these things, you legally have an obligation to follow whatever the documents say. If you do not understand something or want to take your time reading it, ask to take a copy home to read over before you sign it. If the dealership will not give you a copy, take as long as you need and read it in its entirety.

Call the dealership to find out if they have the model you want in stock. If you show up, the salesmen will do his best to get you into a car, period. For example, if you want a 4-door car and the dealership does not have any to offer, you have wasted your time. Just pick up the phone.

Mileage and fuel economy should be important factors when shopping for a new car. More economical cars may cost more upfront, but you can save thousands on gas over the next five years. This is a huge factor to consider when thinking about your future budget.

Always speak to your insurance to get a quote on your intended vehicle. While it may seem realistic to keep up on car payments, the added cost of insurance might put you over budget. Find a vehicle that's a great balance between affordable insurance and price.

Purchasing a new vehicle Auto Loans Bulk Purchase can be stressful and time-consuming. You need to know about cars to make intelligent decisions about which vehicle to buy. Store this information in your mind so that you're ready to get a car that fits your needs the next time you go out shopping for one.

Need To Buy A Car? Try These Car Shopping Tips

Most buyers find themselves overwhelmed when they go looking for a new vehicle. The right advice will make the process go more smoothly. The information included here can simplify the entire process of purchasing a car.

Before you leave to buy a car, you have to know certain things about what you need. How much of a budget do you have to work with? How many passengers do you need to be able to accommodate? How important is gas mileage? Are you a fan of four doors or a two door coupe? Make some notes about the things you really want the car to have, and take the list along.

If you're getting a car from someone privately, get a mechanic you know to look at it first. If the dealership does not let you to bring your own mechanic, you should go somewhere else. The car may have costly issues that make it worth far less than the asking price. Investing in a car isn't worth it when it's a lemon.

The asking price of a car is always just a starting point, and you should never pay that amount. This isn't what the dealer thinks the car is worth. When you need help with negotiating, ask a loved one to come along. You need to have an idea of the right price ahead of time.

Don't expect to be in and out of the dealership. You should not purchase a vehicle if you feel rushed and do not have time to think about your decision. Making time for a whole afternoon may be the best. If you have other obligations, plan on coming back the next day.

When shopping for a new car, have a firm budget in mind before you set foot into a dealership. Never exceed the maximum amount of this budget, regardless of what the car dealer says. Do not let the salesperson talk you into purchasing an expensive car if you are going to spend the next years struggling to make your payments.

Never discuss down payments, incentives, or trade-ins until you've established an actual price on your desired car. These will be removed from that bottom line price. Negotiating first can get you a better price, and then you can discuss these little "extras."

You should not expect to necessarily walk away from a dealership with a vehicle. You may find out that the car you like is available on a small lot, or through a private seller. Check online or in classifieds to find cars for sale near you.

Salespeople often have monthly quotas to reach. Use this fact to your advantage by shopping for a car toward the end of the month. Salesmen who have not met their quota are going to want to make one more sale. It will be easier to negotiate toward the end of the month.

Go to car shows to see what kinds of makes or models might fit you. At a car show, you can make detailed comparisons of multiple manufacturers' offerings in a single location. Additionally, you have the opportunity to be surrounded by car experts. After visiting an auto show, you can know more about which cars appeal to you.

Understand that you may not find the perfect car for you. Maybe the cars in your range don't offer the features you want, or the cars available on the lots in your area just don't cover your desires. Missing out on heated seats won't destroy your driving experience after all.

Before you even step foot into a car dealership, you need to have a solid number in mind. Your budget should include the total amount you will spend and the payment amount you can afford. By having this information along with the car's market value, you will ensure a smooth buying experience.

Go online and check prices of cars locally and in cities nearby. You may be able to find a cheaper price in another city because often, different zip codes have different prices. If you go online and compare price trends, you can find out the the cities that offer the lowest prices.

When you next go to buy yourself a used or new vehicle, simply keep the above information in mind. Car shopping can be easy with a few pointers. Maintain this article in a safe place so you can refer to it anytime.

Apple reportedly halves iPhone X early 2018 production target

Apple halves iPhone X production target, report says - CNET


Apple's iPhone X is its most expensive phone yet.


Apple reportedly notified suppliers on Monday that it's halving its iPhone X production target for the first three months of the year.

The company was planning to produce 40 million units of the iPhone X in the first quarter but has now revised the figure to 20 million, Nikkei reported without citing a source.

The report comes almost a week after an analyst said Apple will kill off the iPhone X when the second-generation model hits the market later this year. The iPhone X is the company's most expensive phone to date, with a price tag of $999 (?999, AU$1,579). Apple would prefer axing the current iPhone X over dropping its price so it doesn't sabotage sales of other models, said KGI Securities analyst Ming-Chi Kuo.

The company's production target for the iPhone 8, iPhone 8 Plus and iPhone 7 remains at 30 million units for the first quarter of the year, Nikkei reported, showing no change from when predictions were first published in November.

Apple didn't immediately bulk portfolios respond to a request for comment.

ApplereadingoApple reportedly halves iPhone X early 2018 production targetJan 29oiPhone X: The five worst features in Apple's best phoneJan 28oiPhone X: Are animojis and selfies the only reason to buy it?Jan 27oApple makes sudden noise about HomePodoSee All

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What You Need To Know About A Car Purchase

You may not have had the best car buying experiences in the past. However, it's time for things to be done a little differently now. There is some great information here about getting the best deal on a vehicle.

Never succumb to the salesperson's tactics by agreeing to purchase a vehicle priced beyond your budget. A lot of people purchase a BHPH Note Buyers sports car solely because the dealer talked them into it. Keep your budget in mind and stay in control of the situation.

If you cannot make a deal, you might be wasting money. A person should never end up paying the sticker price. These prices are too large on purpose so that dealers have some negotiation room. Use this to your advantage.

Before you visit a dealership, view your car loan on the Internet. Not having this information can cost you a lot of time and energy. If you have a loan in-hand when you visit the dealership, the purchasing process will be streamlined.

Look online for the best available deals. Doing some online research can result in major savings. When you find the vehicle you want, you may either go to the dealership that has it, or go to a dealership and get them to buy it for you. If you can make the drive, then drive to the dealership offering the car in order to save money.

When negotiating, overall price should be more important than monthly price. The dealer can set the monthly payments at any amount, but this will extend your terms, resulting in a very high purchase price. Focus your negotiating on getting the best deal possible on the total price and financing you receive. Then figure out what that works out to on a monthly basis.

Make sure you're able to be inside the dealership for hours when you're car shopping. Do not allow feeling rushed to force you into a deal you aren't comfortable with. You should allocate at least a full afternoon. If you do not have a lot of time, you can always come back.

Consider the mileage a car gets before buying it. It may look like it's great to get a V-8 that can tow, for example. But you should consider how often you will be using the towing feature and how often you will need the extra horsepower a V-8 offers.

Talk to your bank beforehand to ensure you are eligible for a loan. This is can boost your security. Dealership finance departments typically give you better rates, but you should compare rates anyway.

You should not expect to necessarily walk away from a dealership with a vehicle. Often, you can find just the right vehicle through private sales or smaller lots. Check classified ads online and go through newspapers to find out more about the vehicles available in your area.

Taking a test drive is imperative. Even if you have your ideal vehicle picked out and available at the dealer, take a few minutes to actually test it out. Driving the car yourself is the best way to get a feel for it. Perhaps the car isn't quite as smooth as you thought.

Use caution when it comes to providing your personal information, like a social security number. Dealers will use it to check your credit report when you give it to them. If you decide not to purchase there, having your credit run by multiple dealerships can hurt your chances of getting the best deal. Do not allow anyone to pull your credit until you have hammered out your deal.

What is your absolute maximum expenditure permitted? Choose a number that takes into consideration the amount you are capable of spending, as well as the value of the vehicle itself.

The goal of a salesperson is to make the highest commissions. It may be obvious, but a good salesperson may hide this fact. Also, avoid extras when negotiating your sales price. The most simple car can quickly rack up thousands more in extras.

Fuel economy is an important factor to remember while comparing your options. A car with better fuel economy may cost a little more in the beginning, but it will save you a ton of money on gas. Make sure to consider your long term expenses when purchasing a vehicle.

When shopping for a car, target the end of the month. Dealers are trying to reach their monthly quotas and you could help them with that. Take your time and engage in negotiations. See how low you can bring down the price.

Speak to your insurance company so you're able to get an estimate on the vehicle you're thinking of buying. You may think a certain car is affordable for you, but there may be high premiums attached to it that you aren't aware of. You want to choose a car that offers affordable insurance rates along with the features you desire.

Choose a vehicle that you know will not need much repairing, or at least only needs cheap repair. You won't want to have to pay to repair it every few months! Look at online reviews for the best vehicle for your needs.

Now you should be able to get the right deal for your needs when you are looking to purchase a vehicle. You have the tools to make the process easier than you probably thought possible. Apply these tips to your next vehicle shopping trip to find a great car that meets all of your needs.

All The Help You Need To Get An Amazing Car You Can Afford

Not everyone enjoys shopping for a new car, though most love driving them. A little knowledge goes a long way when purchasing a vehicle. Read over the advice provided above in order to get on the right path towards obtaining a great car.

If you fail to negotiate a price, you are wasting money. You should not need to pay the car's full retail price. Dealerships inflate prices to give room for negotiations and to give you the impression you are getting a good deal even though they only give you a small discount.

Before heading to the dealership, do some comparison shopping online. Once you know the make and brand you are in the market for, then go see the dealer. Research online before settling on any final decisions.

Search online for some great deals. Online searches can help you get a great price. Once you know which vehicle you like, you can drive over to the dealership to purchase, or arrange for your local dealer to obtain it for you. If the dealership that has the vehicle is not too long of a drive, consider making the trek to save the most money.

When negotiating cost, think about the entire price, rather than the monthly payment. The monthly price can be changed to suit your needs, but the overall price will still be very high. Don't forget to check that before you sign on the dotted line. Rather, concentrate on getting the lowest overall cost for the car. After doing that, you can work out the monthly payments.

Discuss cars with people in your life that you trust. Are they happy with their vehicle? Are they regretting their vehicle purchase? What things are they hearing about different cars that are out there? This gives you trustworthy information to go on.

If you feel like you can be talked into things easily, make sure someone goes to the dealerships with you. Try bringing a relative or friend to ask important questions and negotiate offers. You need to let your partner know about your budget and your needs before you hit a dealership.

Most salespeople have monthly quotas they need to meet. If you wait and do your car hunting during the last week of the month, you are quite likely to get a better deal. If a salesperson is behind on their monthly quota, they will be ready to lower prices to get you to buy a car. This can help give you some wiggle room with your negotiating.

Purchasing a new car is both frightening and exciting. You can do much of your shopping online. A variety of dealers offer their whole stock and pricing on the Internet. Using this technique will save you both money and time.

Visit a local auto show to find out more about the cars available. At a car show, you can make detailed comparisons of multiple manufacturers' offerings in a single location. You will also have access to numerous professionals who can tell you anything and everything about each vehicle. You should be able to walk out of an auto show with a good idea of the cars you'd like to look into further.

Research properly when you want to buy a car that is used. There are online sources that can give you good values. You could use NADA or Kelly Blue Book to know how much a car is. If there is a dealer selling cars at too high of a price, search other places.

It is important to remember that salespeople are paid commission. This may seem obvious, but it can easily be lost when faced with a pro. Also, avoid extras when negotiating your sales price. Good deals can quickly become bad deals in this way.

Check out prices in nearby cities as well as your own. Sometimes, nearby cities will provide you with a significant discount. Look at some price trends online to see which cities have the best prices.

The end of a month is usually the best time to go car shopping. Salespeople want to meet their monthly goals by making another sale that could put them in their desired count. Come in a few days before the month ends so you can negotiate over time if you need to.

Be aware that advertising fees are sometimes tacked on to the price of a car. You shouldn't have to pay for that! If they choose to continue in this way, walk away. They will probably change their tune quite quickly.

If your salesman says that they are going to tell their manager your offer, then be aware that their initial counteroffer won't be the lowest. You can give them another offer, and then the next one should be the lowest. They wish for the deal to get closed soon, so they'll give you an even lower price.

Unarguably, car shopping is a stressful activity. The truth is, with adequate research and preparation, buying your next car can actually be an enjoyable experience. This article can help you begin the process.

Do Not Get Ripped Off On Your Next Car

Going to a car dealership can be both intimidating and exciting. You will find a great car at a good price if you take the time to do some research. Continue perusing the piece that follows and you will get some useful insight about making a great choice.

When buying a car, you need to understand what you require. How much can you spend? How many people need to fit into the car? What are the miles per gallon that you desire? Do you want a two-door car or a four-door car? Make a list of all the things that you want your car to have.

Scour the Internet for the best deals. Searching the Internet for low prices is one of the best things you can do. The right vehicle may be a short drive away, or your local dealership may be able to bring it in on your behalf. If you can get to the dealership, make the drive to save the most money.

Instead of fixating on the monthly payments, keep your eye on the total price. Salesmen can virtually give you any monthly price you want; however, a very low monthly price will result in you paying this amount for many years. As a result, your final cost will be extremely high. Instead, think about getting the best price you can on the full price, as well as the financing. Once you have done that, determine what the monthly payments will be.

You should always have someone go with you when going car shopping. Since they aren't the one making the final decision, they may be able to help you steer clear of a deal that isn't the greatest for you. This can be any relative, a co-worker or a friend.

Establish a car buying budget before you go to the dealership. When shopping for a vehicle, do not look at vehicles above your price range. He doesn't have to pay the bill!

If the car you are driving now is expensive, don't drive it to the dealership. Once salespeople see your expensive vehicle, they will not accept any of your offers and try raising prices because they will assume you can afford to spend more on a vehicle.

Never disclose the trade-in, what you have down, or what you want until you have a price ironed out. Smaller things like down payments, and incentives are items that should be subtracted from the bottom line. Also, you will typically end up with a better overall price if you negotiate the deal from the onset.

Shop online. You'll find almost any and every vehicle online. While online, learn everything about the car of your choice before visiting a dealer. Researching online can tell you everything from features to miles per gallon to resell values.

Shopping for new cars can be fun and exhausting. Did you know that you can save much time and money by doing comparison shopping from the comfort of your own home by logging into your computer? There are a number of websites that list car prices. These searches allow you to make the process more manageable, allowing you to get more done with less money.

This first thing you should do when you are considering purchasing a car is figure out what your budget is. You need to have a firm idea of how much car you can afford. Determine how much you'll be able to spend on a monthly car payment. You might need to search for a loan prior to car shopping.

It is best to avoid talking about your trade-in early in the negotiations. You want to offer your trade-in after you've already negotiated the price of your vehicle. The dealership might adjust the cost of the new car based on the fact that you have a car to trade in if they know about it beforehand.

Each salesperson that you encounter will have a different personality. Car salesmen are known for a pushy, overbearing sales method. Dealerships have begun to see that friendly sales techniques and satisfied clients are what bring people back year in and year out. Do not hesitate to walk away from an overbearing salesperson. Other, more reasonable, salespeople would be thrilled to help you.

Once a new model of a car comes out, wait awhile before you buy one. You will pay a lot more to buy one shortly after it was released than you would at any other time. Take your time and then check it out down the road.

If you can, wait until the end of the month before purchasing a car. Salesman just want to achieve their goals each month and the next sale might be the one that gets them over the hump. Wait a couple of days to deal with them; when the month comes to an end, you are more likely to come away with the best deal.

Before you commit to purchasing a car, get a quote from an insurance agent on the cost to insure this automobile. You may realize that you really can't afford the increase in your premiums. Find a vehicle that's a great balance between affordable insurance and price.

When shopping for cars, it can be fun and stressful at the same time. By learning about purchasing a vehicle, you can be more comfortable with the process which in turn will make it more enjoyable. Keep in mind the information presented here, so that you can have the best possible experience.

About Subprime and the 2008 Financial Crisis

Recently, the financial crisis and its related terms have become buzzwords in their

own right. Terms such as 'Subprime', 'Lehman Brothers', 'Collaterised Debt

Obligations (CDOs)' and 'Mortgage Backed Securities (MBSs)' appear every day

in local newspapers, while experts of all stripes proffer various recommendations

on how to avoid the next financial crisis. But do we really understand what the

Financial Crisis is about? What caused the crisis? How did the government

respond? If it is a real event that has occurred, can a similar crisis be avoided in the

future? If so, what can be done to prevent a similar meltdown?

Definition and Key Characteristics

The recent Financial Crisis can be defined to be a series of events, starting in 2007

with the bursting of the US housing bubble and ultimately culminating in the freeze

in credit and short term money markets, which coincided with the drastic falls in

asset prices around the world.

Most financial crisis start with investors seeking a higher return on their capital.

Some would call it greed while others would label it as a maximisation of

individual utility. This time was no different.

In the years following the collapse of the dot-com bubble, the Federal Reserve

(Fed) lowered the Federal Funds rate (which corresponds to the rate at which banks

lend money to each other) from 6.5% to 1.0%. This was done to stimulate lending

and consumption, to mitigate the effects linked to the dot-com crisis and to prevent

the economy from slipping into a recession.

Apart from the Fed initiatives, interest rates also came under pressure from the

increase in the current account deficit, due to high government and private


Current Account (CA) + Non-Financial Account (NFA) + Official Reserves

Settlement (ORS) = 0

The basic balance of payments accounting schedule indicates that when current

account experiences a deficit, the change in the Non-Financial Account (NFA)

must be positive. Deficits must be financed with capital inflows and in this case,

the foreign entities invested in the US treasury bonds which ultimately reduced

yields and interest rates.

Ultra-low interest rates are a double edged sword. As debt servicing costs drop,

consumers have an added incentive to take on more debt. At the same time, the

return on saving deposits drop, and the savings rate decreases.

At what level should interest rates have been fixed?

In fixing interest rates, central bankers sometimes rely on the Taylor rule, a

monetary policy guideline developed by US Economist John Taylor which

prescribes the ideal nominal interest rate which should be used as deviations in

inflation and output are observed over time.

In its simplified version, the rule can be represented with the following equation:

I = T + R + a (T - T*) + b (Y - Y*)

where I is the nominal interest rate

T is the rate of inflation

T* is the targeted rate of inflation

Y is the actual Gross Domestic Product

Y* is the targeted Gross Domestic Product

a, b are parameters describing the sensitivity of central bank policy to

deviations in inflation and output

In the paper written by John Taylor, entitled 'The Financial Crisis and the Policy

Responses: An Empirical Analysis of What Went Wrong', the US Economist

argues that the Fed was overly aggressive in lowering interest rates.

John Taylor goes on to argue that the Fed, by lowering interest rates drastically to

stimulate the economy, inadvertently sell buy here pay here accounts provoked the Housing boom and its

subsequent bust.

However, had the central bankers followed the Taylor rule and had they lowered

interest rates in a less drastic manner, it is anyone's guess whether the economy

would have instead gone into a period of price deflation, as in the case of Japan in

the 1990s.

In his paper, John Taylor went on to study the correlation between the Fed funds

rate and the interest rates set by other Central Banks. He found that there was a

statistically significant relationship which indicated a certain degree of correlation,

and coordination between the Central Banks.

While he does not explain why this is so, it is easy to come up with some reasons.

Assuming that world Central Banks do not coordinate in the fixing of interest rates,

every bank would set her rates independently which would lead to frequent changes

in interest rate differentials. Countries would suffer destabilising inflows and

outflows due to speculative activity (like the Carry Trade), which is reason in itself

to pursue a coordinated monetary policy.

However, low interest rates alone cannot explain the reason why there was a

housing bubble or why a credit crunch occurred. To put things in perspective, we

also need to consider the role of Government Sponsored Entreprises (GSEs).

What are GSEs and what did they have to do with the crisis?

Government Sponsored Entreprises (GSEs), such as Fannie Mae and Freddie Mac

were originally created by the US government to further certain social goals, such

as increasing access to home ownership. GSEs do so indirectly by facilitating the

flow of credit. Typically, banks provide home loans to borrowers who are unable to

finance the entire purchase with the existing resources. However, the number of

loans that a given bank can grant is limited by the equity on its balance sheet and

national regulations. In order to encourage banks to lend more, GSEs purchase

loans on the loan book, thus providing the banks with cash to continue lending. By

facilitating the flow of credit and indirectly financing home loans, GSEs play in

key role in improving access to credit.

GSEs are only allowed to purchase conforming loans, which place a ceiling on loan

to value ratios. This ensures that borrowers within their means. For a loan to be

classified as 'Conforming', there are also restrictions on the minimum income

required and other administrative requirements.

In theory, such as system should function perfectly. However, in the US, these

entities were structured in such a way so as to create perverse incentives which led

to the subsequent development and collapse of the US housing bubble.

Take Fannie Mae for example. The Federal National Mortgage Association, also

known as Fannie Mae, started as a government institution in 1938 but was

converted into a private shareholder owned corporation in 1968. The organisation

was later listed on the stock exchange.

As a profit driven company with shareholders to answer to, Fannie Mae soon came

under pressure to increase its profit margins. However, it was restricted to buying

low yielding 'conforming loans'. Ceding to shareholder pressure, it began to relax

underwriting standards and started to purchase higher yielding sub-prime loans as

well. Loan to value restrictions began to slip.

With Fannie Mae purchasing lower quality loans, lending institutions were now

free to lend to a wide spectrum of borrowers, which include low or no income

individuals. With the easy access to credit, people began to commit to house

purchases with little regard to price and affordability. Housing prices began to

creep up.

With property prices increasing, people began to see housing as an investment

opportunity. Like the Tulip mania, the popular perception was that prices had no

way to go but up. People began to borrow to invest in property. The increased

demand caused prices to move up drastically. Between 1997 and 2006, the price of

a typical house in the US increased by 124%.

As the housing boom continued, people were able to use their houses to finance

their consumption as well, drawing cash out of their homes using Home Equity

Lines of Credit. The world began to observe a new era of monetary excess, with

Consumer Price Index (CPI) inflation, averaging 3.2% annually from 2005.

The role of securitization and how it is related to the low interest rate environment

When GSEs such as Fannie Mae purchase loans, they repackage them into

collaterised instruments such as Mortgage-Backed Securities (MBS). MBSs are

made up of a series of mortgages pooled together using a trust structure. These

MBS are later sold to investors. Owning an MBS represents a claim on the cash

flows from the underlying mortgages.

In the previous section, we argued how the privatisation of the GSEs led to an

increase in the number of sub-prime loans granted. As long as these loans are

serviced, they are highly profitable. Including a certain quantity of these loans in

any MBS would increase the MBS' yield.

Because MBS' often contained a certain percentage of sub-prime loans, MBS

marketers were able to offer high yields to attract investors. At the other end,

interest rates remained low, and investors began to look to higher yielding

instruments to generate better returns on their capital. Hedge funds, Pension funds,

Universities and other institutions began to purchase MBS' on a non-negligible


With investor appetite for MBS' came well known mortgage brokers like Lehman

Brothers, which generated significant revenue from fees generated by purchasing

mortgage loans, packaging them and reselling them to other investors.

Certain critics argue that Rating Agencies were complicit in the whole process.

These critics allege that the rating firms knew about the fundamental instability of

the MBS', but continued to award high ratings, often triple A, in return for high

fees from the MBS sponsors