Simple explanation for the current financial crisis

I certainly would be unable to write more easily and perfectly understandable for even the most layman, that is why you put on a wonderful article published in elmanifiesto.com by Leopoldo Abadia Thus began this move -)) 1. For years, the interest rates prevailing in international financial markets have been exceptionally low. 2. This has meant that banks have seen the business to smallest are: a. Giving low interest loans to a b. They paid something for the customer deposits (zero if the deposit is in current accounts and, if in addition, charges a maintenance, paid minus something ‘) c. But still, the net interest income ( ‘a’ less ‘b’) decreased 3. Someone, then, in America, it struck him that the bank had to do two things: a. Give more risky loans by the interest they could charge more b. Compensate for the low margin by increasing the number of operations (1000 x bit is only 100 x bit) 4. As to the first (most risky credits) decided: a. Offer mortgages at a rate of clients, the ‘ninja’ (no income, no job, no assets, that is, people without steady income, without fixed employment without property) b. Charge you more interest, because there was more risk c. Harnessing the housing boom that was in the U.S. market d. Moreover, full of enthusiasm, decided to grant mortgage loans worth more than the value of the house that he bought the ninja, because, in the aforementioned housing boom, the house in a few months, would cost more than the amount given on loan. e. This type of mortgage, they were called ‘subprime’ (i. WHY ONLY THE USE OF tadalafil online india? It is a sildenafil citrate medicine used to enhance the blood flow. It is a dysfunction based on the physiological functions, occasionally a decent diet and excess exercising might not assist, thus making the order cheap cialis cute-n-tiny.com usage of the buy tadalafil should be done strictly for the erectile dysfunction and not for any other disease. Probably more men care about putting the manhood back in the viagra buy no prescription man than putting a man on the moon. Just have a research wisely and pick cialis samples out a person to be free from erectile dysfunction. They are called ‘prime mortgages’ which they have little risk of default. On a rating scale between 300 and 850 points, prime mortgages are rated among the best 850 points and 620 the least good. ii. They are called ‘subprime’ which have more risk of default and are rated between 620 and 300 the least good, bad). f. Besides, as the American economy was going great, the insolvent debtor could find a job today and pay the debt without problems. g. This approach was good for a few years. In those years, the ninja were paying the mortgage installments and, besides, as I had given more money than their house was worth, had bought a car, had been renovating the house and had gone on holiday with family . This, surely, in installments, with the money they had charged more, and in any case, than they earned in any employment or who had managed to bungle. services range from executive recruitment to corporate governance and CEO recruitment extended their market reach into the middle market with the introduction of Futurestep, our outsourced recruiting subsidiary. 5. First comment: I think, until here, everything is very clear and it is also clear that anyone with common sense, although not a financial expert may think that if something fails, the thud could be important. 6. As for the second (increasing the number of operations): As many banks were giving mortgages, they had the money. The solution was easy: go to foreign banks to lend them money, because something was globalization. With that, the money that I, this morning, I joined the Central Office Savings Bank of San Quirico de Safaja may be that afternoon in Illinois, because there is a bank which my Savings Bank has lent my money to pay him a ninja.