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Financial Crisis Timeline

 

Without any doubt the present economic situation is quite creepy. At the moment it seems that the majority of the world renowned organizations may lose up to 30% of their values over the course of 2009.

As a fact, in this critical financial crisis timeline legislative branches of nearly all famous organizations are making some extraordinarily uncertain moves in an attempt to turn things around.

Although most of the organizations have started to feel this pressure but it seems that there are very few strategies and alternatives currently present that explain how this worst situation can become favorable.

Some eminent financial researchers have done some valuable research and design a financial crisis timeline. According to this financial crisis timeline this current crisis is not the fault of any political party as all political parties are supporting all those bills that show the way to this.

There are many reasons due to which this current financial crisis occurred. The first reason of the current depression is the existence of a domino effect. As in the past, nearly all banks used capital from their saving accounts. Though this worked sound when the market was moving up but when the market took a downturn it caused a domino effect.

At the same time, lower interest rates truly caused banks to lessen their requirements for home loans. In addition, there were several evidences that show that mortgage fraud by numerous brokers and borrowers was skyrocketing.

These home loans were packed together with the Mortgage-Backed Securities (MBS). That was the place where the actual financial crisis started. While on the hand, the process of securitization produced numerous troubles.

The majority of securities were often underwritten, insured and were actually rated by those agencies that stand to make money from the transaction, which resulted in MBS being rated very vastly and were very hard to examine indeed.

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