Entries by Suresh

2008 Sub-prime Crises

Suppose, you buy a house. House costs you, say, 100. Now, you only have 20 with you, so you borrow 80. 100 = 20 + 80 i.e. Uses of Funds = Sources of Funds Again, say bank pays 80 and expects a return of 10% from you. Suppose, you have to repay bank in a […]