Several factors lead to an Ernst alliance with the financial crisis. First, the huge speculative bubble linked to real estate assets. In the United States, as in many Closing Bell other Western countries, after the outbreak of the technology bubble of Asset Management the early twenty-first century, between 2000 and 2001, there was a flight of capital investment in both institutional and household goods to the address buildings. The attacks of September 11, 2001 represented an international climate of instability that forced the major central banks to lower interest rates at unusually low Children’s Hospital levels, in order to revive production and consumption through the credit. San Diego The combination of both factors led to the emergence of a major housing bubble built on a huge liquidity.
In the U.S. case, the sale and purchase of housing for San Diego speculation was accompanied by FOX news a high leverage, ie, from mortgages, with the sale were canceled to return to buy another home with a new mortgage, if not both operations financed through a mortgage bridge. The market brought great benefits to investors, and contributed to a rise in housing prices, and therefore the debt.
But the change from 2004, when the Fed began the United States to raise interest rates to control inflation. From that year until 2006 the interest rate step from 1 to 5.25 . The CNBC’s Closing Bell growth of house prices, which had been dramatically between 2001 and 2005, became a sustained investment decline. In funds August 2005, CNBC house prices and the rate of sales fell in most of the United States abruptly. The foreclosure due to unpaid debt grew dramatically, and many entities have started to cash flow problems to return money to investors or to receive financing from lenders. The total foreclosure of the year 2006 was 1,200,000, which led to bankruptcy for nearly a mortgage within youtube a period of one year. For 2006, the Asset Management real estate crisis and had moved the Stock Exchange, the stock index of U.S. building (U.S. Home Construction Index) fell by 40 .
In 2007 the problem of subprime mortgage debt began to contaminate the San Diego international financial markets, becoming a major international crisis, described La Jolla by some as the worst since the Second World La Jolla War .