 Safest Bank's in the U.K today? |
could anyone give a list on the safest banks in the U.K today in order from least risk.
thanks for any help! thank you very ... |
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 What is a good book for a starter (completely naive) investor? |
| I opened up a small account for my wife because I want her to get somewhat excited (at very least, know what do do if I die) about money. I bought Jim Cramer's Sane Investing in an Insane World ... |
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 Euro v GBP - should I convert now? |
I have 10k in GBP, already I have lost about 2.5k GBP in exchange rate differences over the last month. I live in Ireland and use Euro.
Should I leave my 10k GBP in the UK or change it ... |
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 What should I do with $15000? |
| I will be getting my degree in mechanical engineering in 2 more years. At that time I would like to put that money towards my new life, but until then, I would like to do something productive with it.... |
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 I recieve free stock market tips. Can you please let me know is it worth to follow others stock tips? |
| i don't know much about stock market , but i recieved one email which refer to one indian stock tips website. can you please go through with this email and let me know is it good to follow stock ... |
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 Why gold and oil falling sharply?????????? |
| People say U.S. dollar weak, inflation high... and suddenly what happened ..What do you think gold price reach 1000 some said 1200... How long it will falling????... |
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 How much is a new $50 gold coin worth in mint condition? |
| My father just bought one for my newborn daughter. He seems to think it will pay for her first year of college in 18 years.... |
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 Could someone take me through shares? What are they and how old do I have to be to purchase one? |
| I'm 15 and I just wanted to know if buying a share in a company would be a good investment. Also I have heard it is high risk, surely even if the share price drops, it will eventually pay for ... |
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 If I want to work for a major investment bank what should I major in? |
| It is a possible career choice for me. I'm talkin like Goldman Sachs, JPMorganChase, MorganStanley, Bear Stearns, Citigroup, Merril Lynch, or something.... |
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 What are the best things to do with 250 dollars in the bank? |
| Idk if thats enough to warrant any investment that would have a nice interest rate attached to ... |
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 Fannie mae and Fre stock? |
| Any one guess what Fannie Mae will do after all the trouble? I own Fannie Mae stock what should I do?... |
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 Roth IRA??? |
A mutual fund roth IRA doesn't make interest compared to a Roth IRA? Mutual fund Roths Depends on the Mutual fund? Where can I get a Roth IRA that just gets interests not mutual funds?
A... |
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 Is it right time to invest in shares in india? |
| i want to invest a small amt of money in share, is it right time? i heared tht small investor dont make profit(brokerage +tax reduces the profit) is it so? do i want to go any specific class to know ... |
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swathi c | What's us subprime market issue? |
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Ginger
 |
Basically, many borrowers took out "liar loans" with nothing or little down on 100% financing, 2/28 year ARMs or other creative financing based on fabricated income. The banks made money at the higher interest rates, but now are faced with defaults when the borrowers cannot make the mortgage payments and investors are now unwilling to buy new paper.
The subprime market was established for people with blemished credit scores that did not allow them to borrow at lower interest rates. |
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John T
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Many loans were packaged together into Mortgage-backed securities (MBS). If you buy one, you get all the principal payments from the borrowers whose loans you own.
If a loan is found not to conform to the standards - the guy isn't living in the house, he doesn't have the credit, whatever, the purchaser of the MBS can have that loan removed from the collection, and the originator must buy it back. Several places had dubious standards, and had to buy back more loans than they could afford, causing them to go out of business, like New Century.
The bottom line is that a lot of people own loans and are in houses that they can't pay for. These will eventually cost people money - banks when they foreclose, and the buyers when they are evicted from their former own. Nobody is quite sure who will take losses. |
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Middleclassandnotquiet
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A large part of the problem is is CMOs-collateralized mortgage obligations. These are the underlying security sold to finance bad loans. They are derivatives and are packaged in tranches of different credit risk(good loans with high risk loans) and became difficult to rate. They were considered safe by many huge pension funds and many others. |
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self-employed
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People with poor credit were lent money to buy houses they could not afford and now they are defauling. If a mortgage company does not get paid, they can go bankrupt. These loans are then sold to investors and these investors lose their money. It causes panic and a crash in the stock market which causes more panic and decreased consumer spending which slows the economy and causes job loss. |
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Jeremy F
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Well basically, people with poor credit were lent money and they cant pay back the loan, now the companies that lent them the money are going out of business. This is a huge chain reaction that causes movement in the stock market. I think of it as drama, everyone panics.... But it's the up and down movements that we as investors love, you gotta learn to ride the waves that all of this creates. |
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MARIE K
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Actually, the problem was created by the media scaring everyone into thinking that all subprime loans are defaulting. These scare tactics worked. The investors of subprime loans withdrew en masse. There is hardly any money available to lend. Many mortgage bankers and direct lenders got stuck with loans that they could not sell. Because they could not "sell" their loans, they could not relend. This is the layman's explanation. This is a secondary marketing issue. There are many loans that are making their jump from interest only to a regular adjustable. Most of them started last July. Many of the borrowers with these kinds of loans are refinancing to 30 year fixed loans. Some had intended to refinance to another interest only loan. Because of the uncertainty in the market, it is possible that many of these borrowers will be stuck with really high payments because their loan cannot be refinanced due to market changes. When this happens, we may start seeing more problems. |
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Abhi
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There are many people in US with poor credit. Generally big banks refuse to lend money to them. There are some agencies that lent them money and they are not able to repay the loan. This is the basic problem. All the major financial institutions are facing this problem. Many big financial institutions don't deal with sub-prime, but they support financially via third parties. Overall, the market is overreacted. It should settle soon! |
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