Financial Crisis in Poland 2009

Over the last two decades the world has witnessed a make for of rapid development of free market, techno-scientific revolution, development of modern lucre technology and communications, as well as expansion in other fields of science. The globalization has stimulated significant result in the whole world. These two decades of debt-fuelled economic growth were the start-off premises to global crisis. It is now widely accepted that that term came to an end. Introduction The source of the current problems related to economy crisis was the excessive risk-taking, which was at present associated with sustained reduction in chase rates and investors inclination to maximize profits. The joined States is considered to be the origin country of instantlys monetary crisis. Since 2001 the low interest rates in the United States resulted in an maturation in the number of ascribe mortgage for housing, which were resulting then in a rapid increase in prices of residential real estate. Demand for such properties in the United States was further bigger because of soften criteria for the evaluation of the lenders. The ascribe were granted even the people with poor or unacceptable credit history.

These kinds of credits were also characterized by low sign interest rates, which rise sharply after the initial period, make them very attractive for consumers establishing a new mortgage. The market for unassured credits was grown very fast. But in 2006-2007 interest rates increased and prices for real estate in the United States declined. As a result, many borrowers were unable to repay interests and were face up with having to repay much higher percentage. This led to a big number of cases of inability to repay the credits. That problem affected not only banks that given loans but also the other financial ecesis that took part in trading process. Many of institution bankrupted and that was an origin of crisis. The crisis in the U.S. credit market soon became a global liquidity... If you want to get a full essay, couch it on our website: Orderessay

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