Nowadays we tend to forget about the mortgage crisis because the global economic crisis is taking so much away – quite rightly, because its consequences are devastating – that the actual cause is already obscured.
So it may be interesting to look at the events surrounding the start of the 2008 global mortgage crisis to see more clearly. On the one hand, it may be interesting to know what might cause a crisis that will shake the whole world, and on the other hand, we may see the signs if the money market starts to move in this direction next time. Of course, as earthly mortals, unelected ones, we can hardly do anything to turn things around in the right direction, but it is better to know something because, according to one of the basic tenets of psychology, what we know is no longer afraid – so much. (That is to say, hardly agree with those who knew Stalin or Cancer very well, and for that reason feared Generalism and his best disciple. Psychologists may be mistaken …)
The crisis in the mortgage market
Is due to the fact that the bank cashier was not satisfied with its earnings so far, but wanted to coordinate even more. This may sound like a summary judgment, but it touches on the point and no word can be refuted.
Perhaps we can recall from school studies that the 1929 crisis (whose consequences were far more devastating than today) is because everyone in America has already bought everything, people simply did not want more cars, washing machines, etc. to buy, the market is fully established. Of course, this was not the direct cause, but it can be traced back here.
The main reason for the current crisis
Was that good debtors had already taken out loans and the credit market did not want to expand further. (Why is everything always going to expand? Why is this keyword? Why is it expected that every country’s economy will grow steadily? Where?) Banks have started developing schemes for even worse-looking debtors: only to increase their income. (A very nice word of Turkish origin can come to our mind: blasphemy.)
The real estate problems were the main cause of the crisis
More and more bad debtors were borrowing because no one thought the US economy would turn into a recession once, and debtors would suddenly be unable to pay. However, balanced economic growth is an illusion, as cyclical downturns must always come. In addition, the banks cut the wood under their own because, while not expecting foolishness, the US economy could not grow forever, they put money into increasingly unreliable debtors.
Thus, if the economy was shaken a little, many untrustworthy debtors, who would have had a problem with their credit anyway, were immediately in trouble, but of course they were hardest hit by a more difficult period. If you are still in the mood for real estate loans, click the link below: Mortgage Calculator can calculate and request a quote.