Mortgage crisis, causes of financial crisis in USA and World (part 3)
Thus the description of U.S. economic activity, especially the biggest business, which are controlled by capitalism, that, the fact is if controlled properly , positive impact on U.S. economic growth and prosperity of America’s Economic. This economic growing causes all the people able to buy their daily needs. Refrigerator, TV, Cars, and Houses sold well.
The more spent money to buy goods, the American economic moving ever forward again. Therefore, the USA requires a lot of stuffs, whole stuffs. If the Americans can not make it, for example, they can not make goods with cheap price, they just import its from China or Indonesia or other countries. And that’s what makes China can sell any goods to the USA and making China the country has foreign reserves with largest in the world.
By those ways the companies in the USA succeed to grow over than 60 years. This is part of the capitalist economy. USA with the prosperity and economic power and control over many global resources. However, it is still not enough yet. the wealthy should get wealth. The big bonus should be bumbbled up again. The grafhic of Profits keep rise and try to get the top grafhic the gigantic Companies, supprted to be the super giant but Those aren’t enough.
By the time everyone has bought a house, it shouldn’t be no longer a company sells the house. Because the market of mortgage has been saturated (full), and all have had a house. However, because the principle of a company should keep – grow, in order that the company CEOs have to look for the ways to keep – seel houses and sales volume have to be more and more.
If the person already has a house, then created a necessary, where pets like cats and dogs must have a home. And if their pets already have a home, then who would buy a house? because, if no one bought a house, certainly, the company’s growth will stop and not grow anymore. And it will impact the guarantor firm will not grow up? companies or manufacturers building equipment will also not getting any bigger? and how the banks can grow big? because the doctrine every company must grow and developed well.
Is it certainly confuse the CEOs?
How is the solution? There is a new way, and made by United states. 30 years ago, it was 1980, the United States government made a decision called “Deregulation Monetary Control”. The essence of This decisionis, in terms of mortgage loans, the real estate companies has allowed to use the variable interest rate.
It means : be allowed to use extrainterest from the interest that have been defined certainly. The new regulations introduced 2 years later. Of course, this regulations a big opportunity for many business sectors, such as: real estate, banking, insurance, brokers, underwriters and so on. And these opportunities are actually utilized by the banking.
Related posts:
- Mortgage crisis, causes of financial crisis in USA and World (part 2)
- Mortgage crisis, causes of financial crisis in USA and World (part 1)
- Mortgage crisis, causes of financial crisis in USA and World (part 7)
- Mortgage crisis, causes of financial crisis in USA and World (part 6)
- Mortgage crisis, causes of financial crisis in USA and World (part 4)
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