Which is loaded with the current state of the economy?
January 22, 2013 in mortgage by jedwan
Which is loaded with the current state of the economy?
by jedwan
January 22, 2013 in mortgage by jedwan
Which is loaded with the current state of the economy?
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greed.
lack of quality (government) oversight.
consumption economy.
In one way, you can say low interest rates that were suddenly raised, from say 1% to 5%. Bad loans to people who couldn’t afford monthly mortgage payments (especially after interest hike), enticed by the low interest rates which lead to the housing market bubble growing and finally popping. Banks have all these crappy toxic loans and foreclosed houses with nowhere to sell them or earn money back.
Banks collapse, the housing companies collapse (Fannie-Mae. Freddie), and it takes a chunk of the economy with them.