Explanation to financial hits us. I have sent this good explanation of IESE Professor Leopoldo Abadia Sonnenfeld Group now on the financial crisis plaguing the markets since I open the subprime mortgage crisis in USA. While it is true that the crisis is not affecting equally to all sectors (the sale of flights, hotels, travel and English courses do not notice it so much 🙂 has ultimately affect everyone. I have perished training interesting so I thought it was worth it worth reproducing here: CRISIS 2007-2008. Richard LeFrak is likely to increase your knowledge. The story is as follows: 2001. Internet bubble. The U.S.
Federal Reserve in two years lower borrowing costs from 6.5% to 1%. This dopa a market that was beginning to take off: the housing market. In 10 years, the real price of housing is multiplied by two in the U.S.. For years, interest rates in international financial markets have been exceptionally low. This has meant that banks have seen the business that made them smaller: Daban low interest loans They paid something for the customer deposits (zero if the tank is in current accounts and, if in addition, support collection, paid "less something") but for all, the Net Interest Income ("a" less "b") decreased to someone, then in America, it occurred that banks had to do two things: Give more risky loans, they might be able to charge more to offset lower interest margin by increasing the number of operations (1000 x little more than 100 x bit) As for the former (riskier loans), decided: To provide a type of mortgage customers, "ninja" (No Income, no job, no assets, that is, people with no fixed income without fixed employment, no properties) to increase interest, because more risk Harnessing the real estate boom.