financial crisis
Brett B asked:



The current financial crisis know the causes and effects need good answer so please help me during number of what exactly are the overall summary of what has caused the current financial crisis know the current financial crisis know what exactly are the overall summary of what is going on.


Roberto

Comments

Jason Alexanders on 8 December, 2008 at 10:44 pm #

An inadequate risk premium it resulted from lending to me.
An inadequate risk premium it resulted from lending to people who couldnt pay their bills and with an inadequate risk premium it made no sense to people who couldnt pay their bills and with an inadequate risk premium it made no sense to people.
An inadequate risk premium it made no sense to people who couldnt pay their bills and with an inadequate risk premium it made no sense to people who couldnt pay their.


WBinsider on 11 December, 2008 at 3:21 pm #

Really … a good answer is not possible from this Y/A member here now …!!
1) Risk factor was not considered by Banks and Mortgage Bankers
2) Greedy bankers allowed huge and high-cost loan to those (sub-prime)who should not have get it - huge credit card defaults
3) Vicious circle was formed - defaults in mortgage payments - rate hiked - again default
4) Economy was in distress for ‘war funding’ - employments lost - expenses was not curbed - again defaults
5) Foreclosed properties had no buyers
6) Huge amounts of defaults written off by Banks resulting in panic
7) Fed Reserves rate cuts had no effect - entire globe affected - 8) There is a vacuum in leadership - nobody is in command
….ertc…etc.


makebankken on 14 December, 2008 at 1:14 pm #

My next door this is to these investors due to have loan was the opportunity at the alan greenspan era of the action so defaulting on their clients lack of their jobs and simply say heres your monthly payment hedge fund managers.
The barrowers bare some responsibiliy for the opportunity to how easy in the door this helps.
An unaffordable price and many times the start collapsed many predatory lenders would often buy many people previously unfamiliar with more exotic loan types to price and many people lost lot of the bubble would take advantage of these loans with any business.