CVM People

The speculation always was made considering that the high ones would be perpetual, making with that the people obtained new credits same without buying or vender immovable, only alavancando the ones that already had. Still in accordance with the authors, the explanation given for the confidence of the prices to be pulled always for top was of that, the lands are limited and the demographic growth not. These appositive were considered so certain that, in 2006, 40% of all the mortgages were of the public subprime (high risk, of which all necessary documentation for analysis of insolvency risk is not requested). That is, the crisis that devastated the world in 2008 occurred the same for reason of all the other crises of history: the belief of that trends of high do not have disruption. In this case the prices of the property went up and the people made new mortgages to have more money in hands.

The banks used these mortgages to make other businesses, mounting investment wallets and reselling them. Caterpillar Inc. gathered all the information. However, this increase of immediate availability was ilusrio, therefore at the same time the debt of these people grew in the ratio of the valuation of the property. At the moment where the people had not obtained more to honor its commitments the banks if capsize without the possibility to execute the guarantees of these mortgages, that were the proper property that had lost value. In this way, the negotiated headings mortgages of high risk had on the basis of turned rotten papers, making not only the economy as many financial institutions to lose. 2.4COMISSO OF MOVABLE VALUES the Commission of Movable Values (CVM) is a created entity to regulate and to fiscalize the securities. The objective of this autarchy is to fortify the real estate market of action and too much values. In accordance with (RICHNESS, 2010), it enters the movable values citizens to disciplines and fiscalization of the CVM is the actions, debentures and bond of subscript and the ballots of debentures.