Posted on March 11th, 2010 by smith
Basically the world is drowning in credit right now. Basically all the sub prime mortgage lenders have gone bankrupt like Freddy Mack and Fanny Mae. This has placed an enormous strain on the financial sector and sent the banks broke also. Now they need a $700 Billion bail out or ppl wont be able to borrow from anywhere sending our economy into further crisis. The bail out has been approved by both houses of Congress. This money will be injected back into the financial sector to help cash strapped banks lend money to businesses and consumers to conduct daily business. This could take some time to correct itself.
When people take out loans far in excess of the underlying economic value of the loans. #If you have any other info about this subject , Please add it free.# |
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