How things work

"How things work" was an entertaining book that has inspired a good site (in English) dedicated to answering our questions on various aspects of science and technology.

Call me naive, but always thought I worked for a mortgage so that the bank will lend you money and you will pagabas month to month. He unsuccessfully sought his performance in this site and I had to go to the BBC to show in a clear, how famous subprime mortgages that are giving us so much trouble ..

No matter whether you know English or not, the important thing is to see the mess of arrows behind a bad loan. In principle, if the loan is made on a doubtful asset is worth more every day, no problem. But now, considering the graphics house prices in the U.S..

Here is where the problem and the root of the crisis we are experiencing. What incredible of all is that we are suffering from the summer before and it is not until now that the Federal Reserve proposes to restrict mortgage risk.

"The acts and unfair and deceptive practices are detrimental not only to borrowers and their families, but entire communities, and indeed the entire economy," said the Fed chairman, Ben Bernanke, in a statement prepared for the Council meeting Governors of the institution.

Well, finally someone has flats to call things by their name: "The acts and unfair and deceptive practices."

On this side of the char, seeing that we had cooked to the dry banks that hold the credit to property developers. And the ECB taking a good dose of morphine in the form of cash to ease the pain of the markets, but as we discussed in cotizalia commenting turn Minyanville (crime is mine, who said something that someone else says, this Web starts to resemble a hairdresser ...):

You can not cure drug addiction by providing more doses, or you can avoid the loss by increasing the authorized amount of credit. It seems that the emergency will last well over what they believed the ECB

That's how things work ... Does anyone know of anything?

Written by Carlos Lopez on December 19, 2007 with 207 comments
Read more articles on papers.