Hi Readers

I will try and explain whats the main course for this big turmoil as of this 2008, Whats the main cause of it to my knowlegde, and the big Reasons behinded it.

Well as of studies and knowldge of this market, with my researach. Like many of you does wonder whats is this turmoil all about that causes all the banks to have problems and institutes to pull from the market. As i was also like you scratching head along with all this possiblities of causes. But whats the main reasons. So  went and study the turmoil for which happen years back. Like the mid 1990s. So let me begin. I stress this. this is base on my knowledge of the market and base of my study. It may be wrong or right. So lets share this if its correct.

Easy credit with house deeds

As of what i know. In the mid 1990s, in the united states, its was ridiculously easy  to get a Home Loan. Why? cause the housing prices are soaring, so its makes the market easy to get a bank loan due to the rasing prices and banks can easily raise the interest price anytime.As there are many people in the market able to get loans. The banks lower the interest rates. to seduce buyers.

Leading investments getting tied down to mortgages

  From here, the bubble of housing spreads to banks through mortgage link investments. Trillions or billions of dollors worth of mortgages pack into investments products and bonds that gave retail investors the proceeds of getting loans repayments. With higher returns rates that all this investments that is begin created by the banks itselfs for retail investors. After which it leads to a gobal poures which other world banks follows.

With demand .Sub-prime rates came up

  With heavy demand in the market during the peak. the banks started making what we call the SUB Prime loans to high risk takers in the market.  So what are this people? this people are the many with NO INCOME PROOF. So when the housing were raising in prices this was not even an issued. Cause if the loaner defaults on payments. the bank can seize back and sells it back to the market when the price is rasing. So next came is the BUBBLE Begin BURST”

Housing prices start falling, what happens?

  With all the above. Now like i always says….What goes up….Must come down. Its just a matter of time. What ever boom you can have in this market. It will have to settle somewhere, and some place. But When is the Time????  Well its just about now in august 2008, the property prices started falling, Mortgages started to default on home loans. Then the investment mortgages that is begin tied down to banks returns turns sour. and started falling.

So in times comes, banks have no choice but to start writing down values of the mortgage link investments, causing Hugh Losses.

There fore today. We faced the same issue of whats known as the CREDIT CRISIS

  When investors and loan payments becomes a burdon to banks due to defaults and non repayments.banks becomes despertae to get new capital. But it will actually get more difficult to attrach new investments.  Follows down , Banks tighten down the credits. Begin fear of lending and repayments.  In which it will affect business loans and individual loans. Its starts to Disappear.

Begin unable to cover. Market started to panic

  In the end , market started to panic. And the big time players in the market have been waiting for a while. They started what we call the market Short Selling, or naked short selling. With nothing to lose, Due to the market begin in RED. Which in turn turn the market WORSE. Then banks began liquidate the shares to raise funds. It brings more trouble.

Further down came US biggest mortgages fanny mae trouble. All eyes were like.OH my God. Its time to RUN. This leads to panic selling. When it comes to panic selling. It does not care who you are. or what you are. people just wants to RUN.  So when people starts running, banks dun get enough funds, when bank do not get enough funds. They run into trouble. In which all this Market Crisis or credit Crisis came up. Eventually leading to the etire market having the biggest MELT DOWN ever in century.Which no body can save. i do not think that the 700billion injection will help any thing.

cause i think the next big thing that is comming up will be the credits cards repayments. which will be the biggest part. Unless the govement is able to cover up. Like i analyst. this melt down affect jobs and losses, housing begin taken back by banks, leading to people having no places to stay. In turns, people having bankupcy. follow will be robery on the raise. the biggest part is having losing jobs. Alot will default on Credit cards payments, which about 80% of Americans live their lifes off them. Thats whats makes Amercain express. Follow will be the next biggest turmoil as of yet to come.

i hope am right. lets see who shares my view

MAGIC TRICK

Second guy says, “Sure.”

“OK. Face away from me and get down on your hands and knees.”

Second guy turns around and gets down on all fours.

“There,” says the first one, “… does that feel like you’ve got a thumb up your ass?”

“Yes!”

SUNBATHING

“Excuse me, miss,” said the flustered little assistant manager of the hotel, out of breath from running up the stairs. “The hotel doesn’t mind you sunbathing on the roof but we would very much appreciate you wearing a bathing suit as you did yesterday.”

“What difference does it make,” Joan asked rather calmly. “No one can see me up here, and besides, I’m covered with a towel.”

These three teenage girls were roommates. One Friday night right after the semester started they all had all gone out on dates, and by chance all came home at about the same time.

The first one came in and said with a smug look on her face, “You know you’ve been on a good date when you come home with your hair all messed up.”

The second one laughed at her and said, “No, no, that’s nothing! You know you’ve been on a good date when you come home with your makeup all smeared.”

The third one sat quiet with a blank stare on her face and didn’t say a thing for a few minutes. Then she reached under her skirt, removed her panties and threw them against the wall, where they stuck with a loud thud!

She said, “Now THAT’S a good date!!”