From what I've been reading things do not improve, the most likely to continue deteriorating. Many people say it's just not that damage the housing market and ready. But that's not reality. The reality is that no one knows for sure what the extent of damage, every week there is another bank or financial institution advertising problems. Today I found an interesting article about the situation and how did this come about. In summary we arrive at this situation because the interests were too low at first, being so low earnings did not allow many to those who had money to invest. This is when it happens to the geniuses of finance the idea of moving the money into more artistic forms. Typically, banks lend money for mortgages using the money they have, these mortgages are in the books as money in the future to win, but both have to put real money into contingency accounts that limits who can both provide. Here is where the artists. If instead of mortgages on the books every month and receiving letters take these mortgages and financial packages have become something new. Now these packages you can use it as a collateral for borrowing money. In the real world I call money on the value of my house. In this case the bank asks for money on the money I asked for my house. Things start to deviate when they begin to handle the packets as if they were shares in secondary markets and are gaining in value. Now they are worth more money next in the chain uses it to borrow to make a purchase from a rival company or any business investment: I borrow, on loan from p'estamo mortgaged the house. And the chain continued to grow because banks were no longer tied to the normal rules and could continue borrowing money and could continue to provide loans for mortgages and anything else. This is now logical if you see one looking back I find that my car loan is not under the seat, if not under a legal figure created by the bank. The bank still charged me the lyrics, but the mortgage will have a third party. If I pack many mortgages together and sell it as collateral generates money to continue growing the portfolio and avoid regulatory agents of the State to, object to the level of indebtedness that has the entity. a premier global provider of talent management solutions that help clients to attract, deploy, develop, retain and reward their talent clients include many of the world's largest and most prestigious public and private companies, middle-market and emerging growth companies, as well as government and nonprofit organizations The latter is what I end by passing the Northern Rock bank in England and many U.S. institutions. Now the problems begin, the economy suffers because of oil prices, rising interest, etc, etc. And the common people can no longer pay the mortgages of homes, mortgages in the first place should not have received because their income levels have not allowed their own homes. Remember that the mortgage loan of the house was used for collateral to borrow money from another institution which in turn also made and the next and the next. That creates a vicious circle is estimated that for every real dollar is 20 to 30 that are guaranteed by the unique real dollar. And as people not paying their mortgages, these packages were sold to other institutions are not worth the paper they are printed. Thus no one wants to receive as collateral to finance anything, which halts the entire system and exposes the true losses. This system has made big gains as the market went up (last year were given billions of dollars in performance bonuses for employees on Wall Street), but when the system goes down the losses are amplified. According to experts are at the beginning of a financial disaster of global proportions and the impact will be between the end of this year and mid next.
