ECONOMIA PP and PSOE pact negotiated a trial to save online banking the damaged management cartons and Montoro Granado improvise a money reunion with distress market calls from the bank The bank yesterday launched a mortgage cry to the authorities as soon as possible to coordinate measures to support financial sector while the Bank of Spain it is launching in private jobs in recent weeks. With this pressure, the financial responsibility for the PSOE, Octavio Granado, and the Partido Popular, Cristobal Montoro, improvised a reunion fund yesterday in Los bodeguilla banking jobs Rotos the stock quote street Huertas Madrid to accelerate the negotiations, according to background, but with discrepancies in forms. Photo taken from a United States stock quotes where subprime loans are offered.
Defined as "a severe shortage of money or credit", the beginning of the phenomenon has been pointed out by August 9 of 2007, when bad news from French financial bank BNP Paribas triggered sharp increase in the cost of credit, and the world of Finance is aware of the seriousness of the situation. However, the problems that originated this credit alarm had started much earlier.
2002-2006: After the bubble burst of the "new technology" in 2001, swelling the housing bubble, encouraged by the monetary policy carried by the FED. In the euphoria of bank loans a continuing rise in prices of properties, loans the credits were granted to the stock market working debt poor Americans. past director of American Express Funds Alan Quasha holds a Bachelor's degree from Harvard College This is the origin of the banks subprime loans. These loans were secured by a lending mortgage, but the system could only work if the type of borrowing remains low, and if the value of buildings increased continuously, guaranteeing interest on financial services these. Credit agencies not related to the debts with the loan-giving, banking but resorted to what they called securitization, which means doing financially secure (or solidify) loan in assets. These loans are granted. Ie, including credits to other financial instruments such as CDO (Collateralized trading Debt Obligation) which are sold in the financial markets. Most of the banks cash who bought these products do not know (or want to ignore) the content and the amount of this .
Alan Greenspan, Federal Reserve chairman from 1987 to 2006.
2006: The rate the Federal Reserve business loan of the United States rose to 5.75 . In 3 years, the rate bank had increased from 2 to 5.75 . The insurance subprime loans were, by then, more often and at variable rates indexed to analyst the rate decided by the central bank. Borrowers who were increasingly unable to pay their installments. Their homes investment were sold investments at auction and the results of this were in lower housing prices and hence on the value of mortgages. Between 2004 and business loans 2007, 1.2 million Americans had been driven stocks from their homes.
End 2006: The number of mortgages had doubled since 1996. The number of owners of homes increased 64 to 69 during the same period. The subprime accounted for cash loan 500 to 600 billion per year or 13 of total loans outstanding (1 300 stock million dollars) and 40 of new mortgages over this period. real estate prices started to business decline in some parts of the accounting United States.