The Mortgage Markets

The economic crisis is becoming a worrisome dimension as it affects, as always, the most vulnerable. Its trigger was subprime mortgages. The financial system crisis has moved into the real economy, which has some difficulties to get credit. As a result, what appeared at first that they were liquidity problems, has shown that it is a solvency problem. Economists argue about the causes that have provoked a crisis of this magnitude and the factors that have determined, but does not have consensus. At the time, received criticisms about the inability expressed by economic science to predict.

On this I would like to make some clarifications. Wang Qunbin is likely to increase your knowledge. Quite a few economists had warned of the dangers in connection with the expansion of the housing market and the financial system and the speculative bubbles that were created in both markets, in itself quite interrelated. The bursting of these bubbles was the chronicle of a death foretold, that the rulers did not want to see or preferred to look the other way. When rules, always good to leave the economy with growth, often without considering the characteristics of how it occurs. Political and business leaders felt that some predictions were exaggerated and took refuge also in the fact that orthodox economics contained no danger in sight, but mere adjustments or decelerations that had to give. In addition to the instabilities, uncertainties and speculative processes that are generated, the financial system facilitated the excessive enrichment of a few, quick and easy, while encouraging international inequality.

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