The subprime loans
by admin on 28/09/08 at 5:11 pm
The subprime loans also called junk or are loans granted to people less well off and therefore subject to a high risk of insolvency.
In Italy, as we all know, banks are very cautious in granting such loans, and many want guarantees, but in America perhaps the phenomenon has spread a little ‘too much.
In fact too many Americans to raise interest rates have not been able to pay the debt with the bank by creating strong chain insolvencies.
This crisis has led banks in a climate of mistrust, as no one knows very well how many banks (worldwide) have relationships with these types of products.
This has led the Euribor (average of interbank rates, or for loans to banks) to gallop, pushing all the loans with variable interest rate of individual citizens (logically to cover their own costs).
All this leads to ever recommend one thing: When you signed a mortgage always been careful, not only to your contract, but also in the credit, in base status as such, many things are decided and if the economic crisis is close better to postpone the birth of a loan, if you do not want to be departing.
Of course, the vision in the long run it is not possible, because we are not fortune-tellers, and as 20 years ago no one could predict a crack argentines, now no one can predict in 20 years what will happen.
For whose eyes wide open!
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