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 ,