Worry and pay the loan to buy a house in China's real estate market

About four years back, a new record high house prices in the UK city of the established, so that more and more people you have to borrow money to buy a house. However, most of the loans are a prime number. Most of the people to borrow money to buy a house has no ability to repay the debt, but too believe they can sell the house can pay off the debt of the "high".

The following is a standard loan: in the market, the funds (bank) loans (past) according to the history of the people with poor credit, the creditor accounts of consciousness, the quality of loans is mainly with high-interest rates and mortgage loans bad credit risk compensation.

Is the object of all accounts of the prime loan object with low credit rating loan is usually poor, without a stable job, low social status or bad credit payment history in the past? The potential risk of this object does not have the ability to repay debts, so it is difficult to access funds in credit capital is the traditional object standard.

In the background of the loan to buy a house near the day to pay, there are millions of houses in your station was found on the edge. This is a big official worried about you. According to the association of financial operations (UK FCA), 16 thousand and 700 (for the house, home phone 17%) is used in underwater lending standards.

The sale of assets: assets are open and semi-open procedures, because according to the law, to repay

Your bank loan risk in the area to buy a house, now ready to have to accept the consequences, from the flood of loans under the standard.

If the worst happens, tens of thousands of houses will be found, most likely to occur in 2008 in the United States I would like a crisis in the financial system.

The above result of the credit crisis in 2008 to the United States and the world are seriously affecting the very large real estate market and the stock market. The formation of a bond market, from asset securitization, illiquid. American construction industry with 15% GDP may have to cut half of the yield, cut 20 thousand jobs.

Your mortgage banks do not have the ability to undo the value of the property can be dropped from the value of the house is re-evaluated (Mark packaging market) bond prices fell rapidly, especially high-risk bonds (Z). Investors hold the stock formed from the securitization of primes is a serious consequence. To reduce the number of the reasons for the loss of predictive value for the entire bond market -- about 22 billion to 45 billion dollars.

To solve the large investment banks hold bonds risk package is not time to market entry has lost billions of dollars as Citi ($2 billion 100 million), Merrill Lynch ($2 billion 500 million), UBS ($1 billion 800 million), Morgan Stanley ($1 billion) and JP Morgan ($220 million), Bell Sten ($200 million), Lehman Brothers (150 million dollars), Goldman Sachs ($130 million). The total loss of the financial investment banks reached nearly $10 billion estimated in 2007. Citi Merrill and Lynch for emergency funds from the Asian hedge fund. Wall Street thousands of employees were fired.

Not only damage bond discount, the business sector of obesity from asset securitization investment bank was temporarily closed. A stock investment bank in June the last drop of sad 2007. And the heavy losses, the Wall Street bosses have left, especially the boss UBS Lynch, Citigroup, Merrill Lynch and Bell Sten.