U.S. Mortgages and the Economic Crisis

We all know that the current economic crisis was caused by the housing correction, which has resulted in illiquid mortgage-related assets that are choking off the flow of credit that is the pillar of any country economy.
For most of the U.S. citizens mortgage represents the biggest and greatest ongoing each month. The subprime mortgage crisis, which began in 2007, caught most of us with our guard down. When U.S. house prices began to decline in 2006-2007, refinancing became more difficult and as adjustable-rate mortgages began to reset at higher rates, mortgage delinquencies soared.  As a result, banks have tightened their loan policies and raised rates making the mortgages more expensive...read more

U.S. Credit Crunch

“Credit Crunch” is an expression often used in the context of the currently ongoing economic crisis. A credit crunch according to Wikipedia is a reduction in the general availability of loans (or credit) or a sudden tightening of the conditions required to obtain a loan from the banks. The basic factor that lead to the actual credit crunch is the housing market bubble. So, how did we get in the current situation?...read more

U.S. Consumer Credit and the Economical Crisis

Today, we use credit to buy almost anything. U.S. families travel, eat and attend college on credit. They charge everything from flowers to gasoline. People don’t even ask themselves about the advantages, disadvantages and costs implied related in buying a credit. It is time to understand what getting a credit means...read more

Is the real estate market picking up or is going down further?

In the last nine months, we were experiencing an economic growth that brought confidence that the U.S. recession is ending and that we will have a sustainable growth. Since beginning of this fall, economic   data releases are showing that we are on the right track. The question that is raised among many people is how the housing market will perform in the current context...read more