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Pupun G | Reason of depretion in world economy? |
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Anand V
|
Buddy, i guess you mean depression. this depression is because of something called the subprime mortgage crisis.
The Subprime Mortgage Crisis is an ongoing economic problem that has become more apparent in 2008 and has resulted in reduced liquidity in the global credit market and also the banking & financial systems. This crisis has exposed the weakness in the global financial system and also the regulatory framework that is overlooking them.
Some of the reasons for this crisis are:
1. The US Real estate market crash
2. High default rates on Subprime loans &
3. Subprime Mortgage backed securities
A Subprime loan is a loan that is granted to a borrower who does not qualify for loans owing to a variety of risk factors like low income level, bad credit history etc.
To know more about the crisis visit: http://anandvijayakumar.blogspot.com/2008/10/subprime-mortgage-crisis.html
Cheers,
Anand
mail me at anandvijayakumar@ymail.com if you need any more details. |
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Max c
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US housing mortgages. |
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ghajini
 |
in simple words: it's bribery |
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NetSolutionist
|
I assume you mean Depression ;-)
There are host of issues here at play.
It started with US housing meltdown:
-People wanted to realize their "American Dream", so they went to buy houses they couldn't keep up with the mortgage payments.
-The bankers who offered their mortgages didn't mind the fact that these people will never be able to pay their mortgage, coz they were more interested in making a quick buck.
-So the inevitable happened, those people didn't pay their mortgages.
-Now, the banks were't really hurting that much, since they bundles those mortgages and sold them to yet another people (read poor investors, etc.)
-So everybody suffered.
-So nobody trusts each other now and they don't lend each other, coz they're simply too many liers.
-When there's no lending, legitimate people/businesses go down as well.
Which results in Depression, oops, sorry Depretion. ;-) |
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Mike J
 |
I hope you mean Depression.
Anyways, I think the reason for it is the economy crisis. |
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kemperk
 |
what is depretion? |
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