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To further fuel the housing boom, financial institutions created complex financial instruments called *mortgage-backed securities (MBS)*. These securities bundled together hundreds or even thousands of individual mortgages and sold them to investors. The idea was that by spreading the risk across many mortgages, the securities would be relatively safe. However, because many of the underlying mortgages were subprime, these securities were far riskier than investors realized. Credit rating agencies, under pressure from the financial institutions that issued the MBS, often gave these securities high ratings, further masking their true risk.
Example:
Guys, let's dive into the heart of Philippine politics! Senate hearings are a **crucial part** of the legislative process in the Philippines. They serve as a platform for senators to investigate issues, gather information, and formulate policies. These hearings can cover a wide range of topics, from national security and economic policy to social welfare and public health. Understanding the purpose and process of these hearings is essential for anyone who wants to engage with Philippine politics.
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