In history, it has always been that for crises and disasters, which are not understood by the people, scapegoats were needed. In the middle ages, the witches, in the financial crisis, the greedy bankers.
reductions in interest rates led to the housing bubble
But the Declaration, greedy bankers are to blame for the financial crisis, is as convincing as trying to explain a plane crash with the force of gravity. There is an alternative interpretation of a market economy, argue the Economists in the United States is represented here, however, largely unknown. PDF So you Finance your home Our PDF guide shows you how to find cheap loans, pitfalls to bypass and get money from the state.To the PDF guide
The American Central Bank Fed had lowered after the Bursting of the stock bubble in 2000, interest rates radically, which led to a new bubble, this time in the real estate sector. This bubble has developed in the United States, but especially in those States that limited the supply of real estate due to strong regulations in the building law.
Self credit weak people were allowed to buy a house
A cause of the house price bubble was that banks are increasingly lending to credit, weak home buyer awards, which would not really give credit. It was politically wanted, by President Bill Clinton wanted, by the legislature forced the state-owned banks Freddie Mac and Fannie Mae secured.
banks ran the risk of be due to discrimination sued if you could prove politically determined quota of loans to minorities.
You knew the risks
Fed Chairman Alan Greenspan admitted in his memoirs, he was aware that this would increase the risks in the financial markets. “But I believe then, as now, that the benefits of a wider residential property were worth the risk.” Buy, Rent or Build? (Display), you can Find the property of your dreams
Not “unfettered markets”, but socio-politically motivated state regulations and the low interest rate policy of the Central Bank the cause of these aberrations.
Follow The loan credit to weak borrowers and were sold in Bundles to investors, including the German Landesbanken-owned by the state (Americans spoke of “stupid German money”). In the Moment, when the housing bubble burst and prices fell, lost these products, because many homeowners could no longer service their loans.
This brought banks, insurance companies and investment funds in serious difficulties, and led to a chain reaction that had a first climax with the collapse of the Bank Lehman Brothers in September 2008.
crisis in spite of the increasing regulatory
capitalism, critics claimed that the financial crisis is evidence of “market failure” of Laissez-faire capitalism in the financial sector. Of it can, however, be no question. Even before the financial crisis 12.190 officials were working alone in Washington in the supervision and regulation of financial markets, five times as many as in 1960. PDF How do I put 20,000 euros? Our PDF guide shows you how to create your capital, despite mini-interest in a profitable way and an expensive Fall deal.To the PDF guide
The spending for Federal agencies tasked with the regulation of the financial market, have increased since the eighties, as the Laissez-faire Phase began, from 725 million, on inflation-adjusted $ 2.3 billion a year.
“The problems are only
displaced” Because the diagnosis was on the causes of the financial crisis is wrong, the therapy is wrong. A to low interest rates, politically-motivated government intervention in the market and excessive Indebtedness has caused financial crisis will be fought today in the world, in turn, by low interest rates, greater market intervention and even extreme debts.
The problems are not solved, but only displaced and in the future has been postponed.
In the FOCUS Online/Wochit experts warn: German cities is expected of a real estate bubble, real estate bubble financial crisis policy of banks-regulation-Lehman