Why do people think that the problem mortgages at reduced rates of arrest?
Change the benchmark federal funds rate will not solve the consequences of decades of loan risk and the problem is aufnahme.Das, there is a lack of funds for the provision of more loans. Investors who have been in countries around the world fear and decided to avoid financing loans at risk to further losses. Nothing can be done to remedy the situation. Also try to help the problem by providing the Fed bail money is like silver in a solution of fire. “A loss of someone of another person to win.” And there is no reason to stop capitalism. Because of credit problems, there are already many opportunities for other investors and new buyers Eigenheimen.Außerdem there are too many houses for sale. This causes a decrease in property values and more problems lenders. “Stagnant house prices lead more borrowers with patchy credit miss payments on their mortgages, according to Fitch Ratings http://www.ibtimes.com/articles/20070524/fitch-ratings-subprime.htmEin lower rate interest of 5.25% to 5% make a big difference in the future, not for homeowners or lenders. The banks have a good spread (the difference between CD rates and lending rates). Currently banks are looking to put more money into the coffers by attracting depositors, not to spend money. Many banks offer CD rates really great at the moment only for banks Flexibilität.Es is no doubt that the problem of mortgages a domino effect on the economy, but it is inevitable. Part of the problem was caused by overbuilding. Many manufacturers have made great profits by hiring workers undocumented (no workers comp, overtime or minimum wage, etc.) and selling homes at inflated prices. Unfortunately, the construction companies did not pass on savings to consumers. This created a situation over-indebtedness of consumers. And dropping the flood of new homes on the market causes only property prices, a further tightening of mortgage Problem.Mieten undocumented workers creates many problems. He created the loss Recent employment in the construction sector by too many new homes on the market. And it causes a loss of tax revenue, so that taxpayers’ money to pay the now unemployed construction worker, was paid for social programs for undocumented workers and their newly born children, etc. are out.