the tsunami of american wild west has made a devastrating impact on whole world market
wel as like everyone we indian also deeply affected by it........moreover we not only affected but many company has got themself into a live bombshell
recently some news got into exist that americas biggest motor manufacturer GENERAL MOTORS is facing severe financial problem n asked for help from fedrel reserve.............
but wat was the reason FOR ALL THIS FINANCIAL CRISES
i hav GOT THESE POINTS
- Resently few days back when we are not facing alll these when all was going god n great, companies have raise salary of there executive n this has raise there living standard.
- These requirements have made them to buy flats i.e. they invest there money in real states.
- they buy lots of flats in america n india n place them in bank N GOT HUGE LOANS.IN TERMINOLOGY WE CALL IT "SUB PRIME LOAN" or "margage loans".
- but becouse of some reasons shares of real state has fallen down so market value has just crashed.
- as market goes down companies has to reduce there salary so there living standard effected.so unable to pay the instalment to the bank in order to clear there loans.
- meanwhile prises of real state also affected n market value decline.
- this made people to save money as salary goes down .
- those who have taken loans. instead of giving installment they handed over there property to the bank in the form of final money/instalment.
- now the ball is in banks side & they have to sell these property to recover there money.
- but they are unable to do so because of the gradual decrease in the prise of real state.
- so bank are now unable to get money from the market.
- these investment are so big and vast as they have use there money in market but unfortunatelly they loss this match.
- n finally they have nothing in there vault.
- some of the banks are LAHMANN BROTHERS, MERRILL LYNCH
- IN INDIA "ICICI".
AND FINALLY THEY HAVE TO SAY THAT THEY ARE "BANK CORRUPT".
SO FINALLY I WANT TO SAY THAT PLEASE DON'T TAKE LOANS .
BE SAFE
N HEALTY
SO DO WEALTHY
N BUY PROPERTY.
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