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Mortgage Mousetrap
Continuing more than a month crisis in the financial market, the United States,
markets and the world's stock markets largely seen as a precursor to a global
economic disaster. But in the United States of thunderstorm clouds in the Mortgages crisis has emerged pieces of the blue sky.
Today, the situation on world stock markets can be characterized by
"nervousness" or "fear" - to the fact that the problem of
lending in the market in the United States could trigger a global credit limit
activity. The second consecutive week of the central banks of various countries
conduct foreign exchange intervention, in an attempt to keep their banking
systems from sliding into crisis. Securities are losing billions of dollars of
its value, making panic in the ranks of both corporate and individual
investors. Financial indicators virtually all major areas of global stock
decline. John Lipski, the first deputy managing director of International
Monetary Fund, described the situation: "After an outstanding period for the
duration literally universal positive for the world economy (it helped
financial markets to absorb new territories and test new tools and technology)
investors suddenly become more cautious." What is happening in the global
financial markets now - at least revaluation credit markets.
In search of security
Mortgage Loans, which have traditionally been in a single bank-borrower overthe life of repayment, today became parts of "subtle" esoteric
investments, which can be sold over and over again. The process of the sale of
bank Bad Credit loans to third parties, known as "securitization"(replacement of non-market loans and / or cash flows for securities freely
circulating in capital markets), for the first time in the United States
occurred in 1968 in the form of government loans. Until the end of 1990 - ies
private capital - Wall Street - did not take an active part in this segment of
the credit market. The situation has changed at the beginning of this century,
when major private investment banks realized the potential benefits
securitisational schemes and actively engaged in the process, making a lot
of money for a large number of its clients. Until a few months ago, the future
market for Bad Credit Mortgage, and credit market as a whole risovalos majority of economic experts in the pink color. What has suddenly gone so wrong in the last
few months that economists have talked seriously about a crisis not only in theMortgage sector, but also on the stock market, currency and the American economyas a whole? Some experts go further, trying to calculate the impact of the
American crisis on the world economy.
Most analysts agree that there has been unhappy combination of a number of
factors. First, the credit market has a lot of bad loans. The amount of
outstanding Remortgage venture, according to some estimates, up to 1.5 trillion dollars in dollars. More than a half million Americans are not able to pay its
bank debt.
Second, investors have made too many risky investments, which now are in a
deplorable state. And last - slowdown, and some even changing positions on the
opposite vector, the American boom in the construction industry.
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