Friday, October 17, 2008
Wall Street Blues
The Wall Street article is about how people borrow money and that the bank is losing money. People borrow money through out the United States. Some people borrow money from the bank and buy houses that they can’t even afford. The bank loses money by people borrowing money and never paying it back. When the people don’t pay the money back, there your credit rises up. Credit is a measure of a person’s ability to repay borrowed money. Some people with good credit are able to get a subprime mortgage loans. Subprime mortgage is a special loan created by the banks. Mostly people who had subprime had to pay a small amount during there monthly payment. When home owners don’t make there payment there payment grew. Home owners suddenly realized that they can no longer afford there house they stopped paying and their mortgage payments started to rise. If you couldn’t pay for your monthly payment then the bank took away your home. Banks tried to sell the homes but most of them sold them for less than the loans itself. The two of the federal National Association is also known as Fannie Mae, and Freddie Mac. The treasury secretary Paulson is trying to rescue the economy asking $700 billion from the federal government.
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3 comments:
Good summary. Note that if you have a high credit, it means that your credit is good and banks are willing to give you a loan because the chances of you paying back that loan is high. The subprime credit was given to people who had bad credit. Overall good summary 10/10
Good Job on your summary!!It was very intresting.Well the thing that was "very" intresting about it was, that so many people borrowed money and didn't pay the bank back and the bank got closed down.Also when they banks got shut down so many people had to move because, the bank owned there homes and people had to move,Ya know.Other than that Greeat Job!!
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