Banking crisis raised many questions. You want to know the real estate mortgage assets held by banks claiming billions of dollars can go to a breakthrough? The most important thing is how do mortgage banking crisis, a global financial crisis, affecting all of us?

The most fundamental reason is the greed of more profit. However, the greed itself is not enough. The banking crisis began in 2008 which combines two kinds of greed and privilege system would be. The banking privileges to create a huge profit opportunities? The bank’s biggest money-making prerogatives, they can create money out of thin air. Each time you create a new bank mortgage lending, banks create more money.

Bank has a legitimate constitution, so that they can with their depositors money begets money. In short, the deposit money deposited in banks. Banks can use these deposits as collateral for loans, loans to others.

The most powerful advantage of this privilege is to let banks lend more in the same deposits. How much can help, they must keep all of the assets, is subject to the U.S. Federal Reserve Bank of rules. While greed is the driving force, not greedy bankers need more light, will be plunged into crisis in the banking system. Bankers noted that changes in the banking law to allow banks and venture capital portfolio of banking traditional banking advantages.|affiches