The risk was spread across the globe from American state pension funds to public health networks in Australia and even to town councils beyond the Arctic Circle. In Norway, for example, the municipalities of Rana, Hemnes, Hattjelldal and Narvik invested some $120 million of their taxpayers' money in CDOs secured on American subprime mortgages.
The global financial crisis had widespread implications, affecting various institutions worldwide, from U.S. state pension funds to public health systems in Australia. It showcased how interconnected financial systems are, with risks seeping into diverse sectors even in remote areas, such as town councils beyond the Arctic Circle.
An illustrative example is found in Norway, where several municipalities, including Rana, Hemnes, Hattjelldal, and Narvik, collectively put about $120 million of taxpayer money into collateralized debt obligations linked to American subprime mortgages. This not only highlights the reckless investment practices but also the ripple effects that can emerge from one country's financial decisions.
