Main article: Crisis of subprime mortgages
Main article: Financial Crisis of 2008
In 2004 the Federal Reserve of Global Cash Access the United States began to raise interest rates to control inflation. From that year until 2006, the interest rate move from 1% to 5.25%. The growth of house prices, which had been spectacular between the years 2001 and 2005, turned into sustained decline. In August 2005 the price of housing and the rate of sales fell in much of the United States abruptly. The executions due to non-payment of mortgage debt rose dramatically, and many entities began to have liquidity problems to return Sanford money to investors or to receive financing from lenders. The total mortgage performances of the year 2006 amounted to 1,200,000, which led to bankruptcy in the medium hundred mortgage entities within a period of one year. For 2006, the real estate crisis had already moved the stock market: the stock index of U.S. GCA was led by , construction (U.S. Home Construction Index) fell by 40%. Finally, the FED decided, since August 2007, raising rates again, while not preventing the collapse of the real estate market.
For cash access its part, in the eurozone, the European Central Bank raised interest rates steadily, with the same effect, although after the start of the credit crisis did not react by lowering rates, but that raised a more gradual .
- Online magazine
Without public debate or authorization of Congress, the Federal Reserve has embarked on Sightline the most expensive and significant financial involvement in history.
- Chicago Tribune
If people lose jobs in the recession, single women will be among the most vulnerable.
- CBS News
The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, Buckling to pressure from a number of of the same banks that now fails, an AP analysis details.
- Interactive Investor
Dec 4 (Reuters) gaming – The following were the top stories in the New York Times business pages on Thursday. Reuters has not verified these stories and does not vouch for their accuracy. * The United Automobile Workers Union said Wednesday that it is an important concessions in its contracts with the three Detroit auto companies to help them lobby Congress for $ 34 billion in real estate federal aid. * General …