Business Trend

House and real estate once again has been blamed as the biggest reason of why we are now sitting here at the economy crisis. The world level crisis affects all countries in different pain but no one country able to avoid this crisis. The problem comes from the mortgage loans as the first place of the biggest reason. Many banks and financial institutions which were easy to give credit for house even they didn’t sure about the borrower candidate’s background. This is really bad move which didn’t use the prudent principle like it was educated in the theory of any credit business. Without good surveillance and examination, the credit offered becomes bad credit loan and then in the mass number all loans suddenly come like snowball which hit all economy fundamental in every country, especially the modern country where the stock and derivative market has been growing so much. This is an ironic story of wealthy country which becomes poor then because of the unmanaged monetary activity. People know there are too many bad credit loans which we can’t predict before because it is covered very well and neatly organized. How smart we keep the bad secret it still able to be unveiled to the public and when it comes, big problem of cash loan occurs.