I don't really understand complex financial processes, but would like to know more about this thingCan anyone explain me (or show a link) the cause and effects of the financial crisis in the world nowdays?To put it in understandable terms:
%26gt; Loans on a premium rate of interest were issued to the individuals and entities with lower credit rating
%26gt; this resulted in higher projected profit but higher risk exposure
%26gt; Because of the higher interest rates and inflation. oil prices etc. these individuals and entities could not repay their loans
%26gt; FIs who offered loans, went in losses and eventually bankrupt
One may look it in a way, buying on credit card and then unable to pay back.
HIH Can anyone explain me (or show a link) the cause and effects of the financial crisis in the world nowdays?Simply put: A whole bunch of AmeriKan deadbeats with no credit and no jobs bought houses they couldn't afford but lied to get the loans.. then when they couldn't make the payments, there were enough of them that it brought down the worlds financial institutions.Can anyone explain me (or show a link) the cause and effects of the financial crisis in the world nowdays?Indiscrimanate grant of loans without proper securities which became bad and it finally eroded theoriginal corpus of the financial instituation and forced to become bankrupt.
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