Return the financial crisis in U.S. markets to excessive bank lending and funding and not taking the necessary precautions to manage these risks and also not seeking guarantees of income or sheet, the borrower has led to empty the banks of liquidity due to stalled recovery of capital and interest from borrowers who could not pay.
The economic and social crisis at the same time as it led to the bankruptcy of some banks and the decline of some financial abandoning a disastrous impact on their budgets and profits.
Also paid millions of Americans who bought homes with loans cheap price of monetary policy and interest rates that followed the U.S. central bank shortly after the events of September atheist ten by reducing interest rates from 5 ر 6 percent to one percent, which was a step in order to support investment and consumption, and thus U.S. economic growth.
According to a study entitled crisis mortgage loans high risk in the United States came within the bulletin Arab Banking Union of Arab Banks said banks that borrow from the Fed lent money on the benefits of low turn customers on the benefits of low, but the same time the benefits of volatile interest rates rise to high central and low After the decline of was one percent in 2004 being 25 ر 5 percent before the central bank to reduce it to 75 U.S. ر 4 percent in September 2007 to contain the debt crisis of real estate.
Shows the economic and media Mazen Hammoud, who prepared the study that the goal of these loans is to buy homes, but demand for real estate led to higher prices of these properties has been pledged to banks for lending to owners of high risk loans with higher interest return between 2004 and 2007 increased the cost of loans and customers became doubtful Already in their ability to repay the debt are unable to repay and then signed the crisis.
According to preliminary estimates for the U.S. housing market, the distressed debt to recover an estimated $ 600 billion as numbers initial banks have resorted to the following view encumbered with houses for sale Vtm view hundreds of thousands of homes triggered a wave of falling prices and decreased value of the receivables to the banks shares fell most of the banks in the market U.S. Treasury and others.
And central banks rushed and as a savior and the last fireman fire at the top of the U.S. is directly concerned with the crisis and global central banks are an agent of infection of up to U.S. banks in the country pumping hundreds of billions of dollars to avoid a liquidity crisis in banks as a result of the crisis of non-recovery of loans.
Central banks were able to American and European, Canadian, British, Australian, Japanese and others to avoid an explosion financially because of the debt crisis of the real estate but that the magnitude of the real estate bubble would require considerable time to shrink the size and therefore will be the implications are many and varied risks.
And long-range losses that customers concerned with the crisis it is found that between one million and three million Americans lost their homes were threatened by the dissolution of real estate and credit contracts signed between banks and customers in order to avoid their positions and losses for both sides, banks and customers, except for initial damage to financial markets was estimated at 5000 billion dollars as the value of money.
The banks, small and medium-sized number of them have declared bankruptcy, while others bought by major banks.
Also wrote off tens of thousands of jobs from sectors such as banks and financial institutions and real estate agencies in addition to the loss of investment funds and other institutions within and outside the United States.
The U.S. real estate sector accounted for 11 percent of gross domestic product of the United States and can cause the crisis, the loss of four percent of U.S. GDP.
Hammoud said that the economic good only for this high-risk mortgages for clients is to allow them to delay repayment of loans and payment of loan interest only.
As for the creditor bank lies in determining the positive interest rate than the average rate for the market by about 50 percent, prompting banks to provide this type of loan.
And finds that the U.S. mortgage crisis may be the beginning of many crises up to the repercussions of the interdependent world economy interests floats hundreds or even thousands of billions of dollar deposits and assets invested on all sides by Arab and foreign
Mnicolany have the reader background on the mortgage is:
Funding from the bank or finance companies or even companies created by real estate developers in order to assist the client in the purchase of their projects through loans and long-term benefits for fiction may also exceed in the aggregate value of the original loan and then ensure that the property in the case of failure to meet payment goes to the bank real estate or other ...
Here is no problem caused a crisis but the problem lies in the event that a resident at the property is not true and exaggerated, and therefore The client after funding for the drug and a decline or stability in the prices of real estate for any reason, whether increases in supply or any political crisis light, will find himself in front of huge commitments have paid between income and declining to pay does not meet the total commitment appropriations foreseen this debacle declares to pay to come to the bank or finance company and the transfer of full ownership of the property to foreclosure, not only that it is the only asset taken as collateral from the client and the bank will find that property value is less than the value paid by the funding for that client, and therefore entered into loan with bad debt and that this situation is a general phenomenon, leading to the bankruptcy of the banks and the mortgage crisis.
As we have the reason for the crisis in America is exaggerated assessments of the property by the brokerage firms and is certified companies in the evaluation. And then the volatility of interest rates approved by the central bank after its political crisis since the events of Septmr So far, in the events of Septmr Reduce the central bank interest rate to 1%!! And to attract investments declined after the result of events and then even here the reader understand how the link between the interest rate approved by the central bank and the mortgage crisis that the interest rate that is what takes the central bank of commercial banks to lend huge amounts of it and you commercial banks lending to customers at that price to take advantage of the difference between borrowing from the central bank and the lending to its customers and also get these loans will increase investment as it provides liquidity in the hands of investors, but it is also associated with inflation being more liquidity in the hands of the customers are fantastic, and When the increase or decrease in interest rate from the central bank is compatible with a low or high bank interest rates on commercial loans, and consequently, a higher or lower prices for those projects subject of loans (and this is what you stated in your topic JU1ST ANGEL) and this is also what happened in the United States of America is quite, is that a lot of clients have received loans in light of the rise in interest rates and faster on landing clients to sell their property to cover their losses and they can not pay their obligations to banks, which led to a slump in property prices, which is essentially a resident more than real ones, and therefore property prices fell and after that clients default on payments and the mortgage crisis emerged in the banks ..
Either in the Arab countries Banks evaluated the drug is usually less than its value and do not give customers such facilities only in the Arab Emirates and especially Dubai, with a link to the UAE dirham U.S. dollar crisis of mortgage Kmard now sits next to Dubai, and looming over the past period specifically after landslides obtained in the financial markets and the most important companies and real estate developers and also the fact that UAE banks granted citizens and expatriates and impaired the ability of credit mortgage loans for residential real estate unit, under the effects of inflation and real imported from abroad as a result link the dirham to the dollar and the dollar's decline has customers great value of their income Fezhroa unable to repay loans regularly, forcing Paljhat lenders or customers themselves to sell these properties at less than its true value under the name of a liar and is (Resales) or re-sale.
Although this is still a responsible official and private sources is keen to stress that: the UAE domestic market will not see any crisis mortgage!!!
As for this sentence, which appeared in your subject JU1ST ANGEL and are (say economic Hammoud said the only good for this high-risk mortgages for clients are allowed to delay repayment of the loans and the payment of loan interest only.) Vsoferd it soon as the subject itself is very important and have a severe impact customers and banks.
Thank you JU1ST ANGEL and waiting for your posts interesting and enjoyable accept greetings and thanks.
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