Another factor is that other leading banks began to encapsulate this loans with bonds, then the transaction and the type of insurance and the new securities based on those mortgages. When the bank interest large income from the bonds, the demand suddenly increases and the mortgage broker continuing lower standard and push as many mortgages to the bank as possible. When the housing bubble burst, everything under the same was collapse. The landlord forced to declare insolvency, the banks also collapsing and follow that the stock market were destroyed.
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