The financial services industry has undergone tremendous changes
in the last decade. As the 2000¬ís began, the world of professional finance was undergoing a major transition into large scale trading of mortgagebacked securities. This transition was facilitated by technological innovations which allowed for the repackaging and trading of portfolios of mortgages, as well as by substantial cash inflows into the US from
savers abroad. This growth trajectory was generally impressive until late 2006 to early 2007, despite minor stumbles in the recession of 2001, and the slowdown in 2003.