Michał Thlon
  The main target of this paper is the review and systematizing of the most important stages of the development of the US subprime market. The layout of the article is a consequence its target and in this manner has to reflect its character of review. The author presents the process of securitization which on the one side had a fundamental influence on the development of this market, and on the other hand contributed to its fall. The most essential tools used on the market of real estate loans including those based on securitization assets (ABS) and those based on debt (CDO are discussed), and mechanisms which brought losses counted in billions of dollars are discussed. Finally, the author makes an attempt to draw conclusions from the present credit crunch as well in reference to the sector of financial institutions and banking supervision.