Source: Cotizalia. The perpetrators of the greatest financial crisis in history since the FOX news Second World War have names and surnames. According to British newspaper The University of Southern California Guardian, what has been happening Closing Bell over the past year finance and a half is not due to a natural phenomenon but a human disaster that has led to major economies and companies in the world to the brink and in which CNBC Making Sense of the Markets 25 people have played Asset Management a decisive role. Who has brought us to ruin, San Diego “the San Diego newspaper asked. Alan Greenspan, Federal Reserve chairman from 1987 to 2006 stands in first place. Photo taken from a United States where subprime loans are offered.
Defined as “a severe shortage of money or credit”, the beginning of the phenomenon has been pointed out by August 9 of 2007, when bad news from French youtube bank BNP Paribas triggered sharp increase in the cost of credit, and the world of Finance is aware of the seriousness of the situation. However, the problems that originated this alarm had started much earlier.
2002-2006: After the bubble burst of La Jolla the “new technology” in 2001, swelling the housing bubble, encouraged by the monetary policy carried by the FED. In the euphoria of a continuing rise in prices of properties, the credits interview were granted to the working poor Americans. This is the origin of the subprime loans. These loans were secured by a mortgage, but the system could only work if the type of borrowing remains low, and if the value of buildings increased continuously, guaranteeing interest on these. Credit agencies not related to the debts with the loan-giving, but resorted to what they called securitization, which means doing financially secure (or solidify) in assets. These loans are granted. Ie, including credits to other financial Asset Management instruments such as CDO (Collateralized Debt Obligation) which are sold in the financial markets. Most of the banks who bought these products do not know (or want to ignore) the content and the amount of this Fox .
Alan Greenspan, Federal Reserve chairman from 1987 to 2006.
2006: The rate the Federal Reserve of the United States rose to 5.75 . In 3 years, La Jolla the rate had increased from 2 to 5.75 . Children’s Hospital The subprime loans were, by then, more often and at variable rates indexed to the rate decided CNBC’s Closing Bell by the central bank. Borrowers who were increasingly unable to pay their installments. Their homes were sold at auction and the results of this CNBC were in lower housing prices and hence on the value of mortgages. Between 2004 and 2007, 1.2 million Americans had been driven from their homes.
End 2006: The number of mortgages had San Diego doubled since 1996. The number of owners of homes increased 64 to 69 funds during the same period. The subprime investment accounted for 500 to 600 billion per year or 13 of total loans outstanding (1 300 million dollars) and 40 of new mortgages over this period. real estate prices started to decline in some parts of the United States.
Finance for Strategic Decision-Making: What Non-Financial Managers Need to Know (J-B-UMBS Series) by M. P. Narayanan and Vikram K. Nanda (Hardcover – April 2, 2004)