Chicago Trust Corporation

real estate market will continue to rise. BUT: In early 2007, the American housing prices collapsed. Many of the ninjas noticed that were paying for their home more than now It was worth and they decided to (or could not) continue to pay their mortgages. Automatically, no one wanted to buy MBS, CDO, CDS, Synthetic CDO and those who already had them could not sell them. The entire Assembly was sinking and one day, San Quirze de Oficina Director called a neighbor to tell him that well, that that money it had vanished, or, in the best cases, it had lost 60 percent of its value. 8Th comment: go now to explain the neighbor of San Quirze what the ninjas, the Bank of Illinois and the Chicago Trust Corporation. You can not be explained for several reasons: the most important, because nobody knows where the money is. And to say nobody, I mean nobody.

But things go further. Because – no -one knows the crap that have banks in bundles of mortgages that have bought, and as anyone knows, banks begin to not trust each other. How they do not trust, when they need money and going to the INTERBANK market, which is where banks lend money to each other, don’t lend it or lend it expensive. The interest that is they lend money banks in the interbank is the Euribor (Europe Interbank Offered Rate, or rate of interest offered on the interbank market in Europe), rate which, as you can see in the word EURIBOR 3 months of this dictionary, has been rising (now is beginning to go down). Therefore, banks now have no money. Consequences: i. do not give credits ii. Do not give mortgages, with what the Habitat, Colonial, Renta Corporacion, Colonial, etc., begin to go wrong, very wrong. And shareholders who bought shares of those companies, see contributions of these societies are falling sharply. III.

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