Financial Crisis in the US
We've recently watched the inevitable downfall of several major US insurance giants which were breaking one by one under the heavy pressure of American financial housing market crisis.
Such huge and well-known mortgage corporations as Fannie Mae, Freddie Mac, American International Group and Lehman Brothers were not ready for the great drop of real estate prices and following credit squeeze.
They support many mortgage banks and credit agencies providing them with necessary monetary funds so that the insurance companies could give real estate loans to people who buy houses or apartments.
They have to serve as a solid framework for the whole insurance market in the US.
The sequence of events was opened by Fannie Mae and Freddie Mac - two significant corporations that control half of the US mortgage market.
However as we've witnessed, the bigger they are the harder they fall.
Instability of these two giants put many people under the threat of losing their real estate property and even pushed down dollar's value in the world's currency market.
In September 2008 70-year-old Fannie Mae and its successor, 40-year-old Freddie Mac, were the first ones to fall.
However the US government took prompt actions to stop the two corporations from crashing and took total control over them.
Being in charge of the two monsters the Federal Housing Finance Agency established a range of measures that will help to stabilize the situation.
Something similar happened to American International Group (AIG).
It arose in the market in the early 60s and has been issuing loans and mortgage credits for a little less than 40 years already.
However this fiscal year has become a major setback for this insurance corporation.
Its share prices collapsed putting AIG on the edge of bankruptcy in the middle of September.
But that was when the US government emerged again and helped them out of the trouble.
The government bought control of the company and set its own game to play.
However history repeats itself too soon and a little later it was the turn for the world-known financial company to take the limps.
Having been around for almost 160 years, Lehman Brothers was always recognized as the most distinguished and powerful body in American financial system.
Nevertheless the crisis was merciless to this company as well and actually swept it away on September 15, 2008 when the company was forced to file bankruptcy before losing all its assets.
In that case the US government didn't take any preventive measures.
In spite of recent failures that happened to the biggest corporations in the US, it seems that the crisis passed most people, including debtors, round.
Most financial experts are quite positive about the present situation.
They say that prices flatten out fast and there are many favorable conditions for mortgage or car loans.
Since the new economic growth is a regular occurrence after such events, car owners are recommended to buy car insurance now before the services recover in value and the prices are up again.
Such huge and well-known mortgage corporations as Fannie Mae, Freddie Mac, American International Group and Lehman Brothers were not ready for the great drop of real estate prices and following credit squeeze.
They support many mortgage banks and credit agencies providing them with necessary monetary funds so that the insurance companies could give real estate loans to people who buy houses or apartments.
They have to serve as a solid framework for the whole insurance market in the US.
The sequence of events was opened by Fannie Mae and Freddie Mac - two significant corporations that control half of the US mortgage market.
However as we've witnessed, the bigger they are the harder they fall.
Instability of these two giants put many people under the threat of losing their real estate property and even pushed down dollar's value in the world's currency market.
In September 2008 70-year-old Fannie Mae and its successor, 40-year-old Freddie Mac, were the first ones to fall.
However the US government took prompt actions to stop the two corporations from crashing and took total control over them.
Being in charge of the two monsters the Federal Housing Finance Agency established a range of measures that will help to stabilize the situation.
Something similar happened to American International Group (AIG).
It arose in the market in the early 60s and has been issuing loans and mortgage credits for a little less than 40 years already.
However this fiscal year has become a major setback for this insurance corporation.
Its share prices collapsed putting AIG on the edge of bankruptcy in the middle of September.
But that was when the US government emerged again and helped them out of the trouble.
The government bought control of the company and set its own game to play.
However history repeats itself too soon and a little later it was the turn for the world-known financial company to take the limps.
Having been around for almost 160 years, Lehman Brothers was always recognized as the most distinguished and powerful body in American financial system.
Nevertheless the crisis was merciless to this company as well and actually swept it away on September 15, 2008 when the company was forced to file bankruptcy before losing all its assets.
In that case the US government didn't take any preventive measures.
In spite of recent failures that happened to the biggest corporations in the US, it seems that the crisis passed most people, including debtors, round.
Most financial experts are quite positive about the present situation.
They say that prices flatten out fast and there are many favorable conditions for mortgage or car loans.
Since the new economic growth is a regular occurrence after such events, car owners are recommended to buy car insurance now before the services recover in value and the prices are up again.
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