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Mortgage Crisis

The existence of an economic crisis for this year (2008) is an event that can be catalogued as macro events since they act on a few important economic not only local but also global bases inside to inside if you understand a large amount of micro events as seen from a global scale. A very important point to mention when we speak of the existence of the economic crisis, is the mortgage crisis, because this is one of the factors that most affects not only banks, but also to customers of the same. The mortgage crisis is a macroeconomic event that currently affects the vast majority of financial markets, since the emergence of this crisis in the United States, preceded the expansion of the same all over the world, especially European banking markets. The primary bases of the mortgage crisis of 2008, are given in the United States, since in 2007 in that country had doubled in housing demand and therefore prices of dwellings also had obtained such behavior; This in a principle seemed not very bad, because Bank loans were in their heyday. The financial performance remained stable more or less 4 months, until said behavior affect interest rates to loans worldwide, which made these rates decreased to such an extent that loans increased both its boom national benches were left without money to pay, forcing them to resort to other entities to request loans of money excessively large; Meanwhile the interest rate did not produce necessary yields so that banks should continue providing such loans. Since this is preceded the beginning of the mortgage crisis of 2008. At the beginning of the year 2008 the creation and utilization of mortgages subprime, was shown as an important source to lessen the impact of the mortgage crisis, because this type of loans it was based on giving them more easily, but with the difference that possessed several points of interest higher than the normal appropriations; and although this initially contributed to decrease the impact of the crisis takes not much that people cease to obtain many loans, thus presenting the feature that some banks were found with large debts caused by the rise of the loans. It is worth mentioning that another important aspect that affection mortgage economy was the collapse of the value of the home, causing so people end up paying more than what actually this property and therefore worth contributing to that persons cease cancellation or payment of such mortgage lending. In countries of the EU such as Spain and France the mortgage crisis reflects largely in the real estate bubble, since the large number of expectations for growth in this area made people to undertake important movements financial, especially mortgage, thus leading to a significant collapse in the mortgage field and investor, creating an economic slow-down which affected quite the economics of banking throughout the European continent.

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