Today’ s Financial Options and Risks
THE CREDIT CRISIS: 10 YEARS AND COUNTING RICK TOBIN
Shortly thereafter, the first rounds of anonymous and not so anonymous bailouts of financial firms worldwide starts with billions of dollars thrown out these collapsing financial institutions. Quantitative Easing( or“ the Fed creates money out of thin air to artificially boost asset prices related to stocks, bonds, and real estate”) begins for the first time in November 2008. groups of pooled investors, crowdfunding for real estate platforms, hedge funds, and equity funds. In recent years, the guidelines for qualifying for government backed or insured mortgage loans have eased up a bit partly to try to compete with the more flexible, faster, and easier to qualify for mortgages offered by private money groups at interest rates that are quite competitive these days.
Mortgage lenders hit the brakes on“ EZ Doc” loans, and focus on specializing in funding mortgage loans that can be sold off in the secondary markets to Fannie Mae and Freddie Mac. Amazingly, Fannie Mae and Freddie Mac( the two largest secondary market investors nationwide for mortgage pools) also almost go under themselves, and they are later bailed out and completely taken over by the federal government. Once Fannie and Freddie are“ socialized” as fullblown government agencies, then the government starts to fund, directly or indirectly, almost 97 % of all funded mortgage loans nationwide for the next several years by way of Fannie Mae, Freddie Mac, FHA, VA, and USDA loans.
The Bretton Woods Agreement( a United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire between July 1st and July 22nd, 1944) was the earliest version of a global financial order that was enacted in 1944 between the U. S. and 43 other allied nations at the conclusion of World War II. Bretton Woods pegged many foreign currencies to the U. S. dollar which gave it much more stability, prominence, and value worldwide. The IMF( International Monetary Fund) and the World Bank were created by Bretton Woods as well. With Bretton Woods, the value of the dollar was also tied or pegged to the price of gold.
Today’ s Financial Options and Risks
Full Doc Government Loans and EZ Doc Private Money: Investors and homeowners between 2007 and 2017 really have two primary funding options to choose from that include government loans with full documentation, and private money loans backed by individual investors,