The crisis has its roots, in essence, in the combination of two forms of conducting credit activity:
• The granting of low-quality mortgages to borrowers with little or no creditworthiness, for subsequent sale.
• The abusive use of securitization to develop the model of both practices were combined in an environment of excess liquidity, low real interest rates, search for higher returns by investors and Lax Regulation, to originate the current crisis
Once the underlying causes of the crisis are known, several initial conclusions can be drawn:
• The crisis was predictable and, in fact, was anticipated, both by the Authorities and by the banks themselves involved.
• It is perfectly typical and even traditional in its ultimate foundations.
• The crisis is foreign and unrelated to the Spanish banking model and its way of doing business.
