Posts Tagged ‘American banks’
When American banks have made all their money and their clients need more money to continue doing business, decided to do two things: borrow at banks around the world or sell junk mortgages to the banks financing other companies or the world. That the bank will sell the mortgage to mortgage the other means that the obligation to spend money on a new bank and new bank assumes the default risk. Clearly, banks both units worldwide thugs and will not want to buy a product like this. Therefore, the U.S. bank launched a package of new discoveries made from mortgages that include low-risk mortgages (good) and subprime (bad), put their name that sounds good (as Mortgage Backed Securities, or MBS, which still sounds better) and focus on worldwide sales. To make matters worse, creating other products that sound too good, but ultimately do nothing but garbage mask “” they contain. It began to spread financial risks for the half of the world. Stocks Pedraforca King does not have a little idea that their investments in the U.S. prestigious full of “garbage”. The Bank has decided to purchase these products Pedraforca Bank Grand Canyon, for example, and not aware of the risk. In other words, when Mr Capdevila put your money in his bank office Pedraforca the money goes directly to the Bank of the Grand Canyon and are provided for those without a steady job, no income and no permanent nature. Consequences: money Mr. Capdevila started to run a substantial risk (of globalization long life). Of course, responsible for the investment bank and has an obligation to pay Mr Capdevila. But what happens if you lose your money? Here enter the measures taken by the government, which decided to use public funds to ensure banks have the money. Read the rest of this entry »