Opinion Uncensored

What is the simplest way to understand subprime crisis?  A person when buys a property and seeks a loan for it then his credit history ,salary, existing liability , paying capacity among host of other things are checked.  Let us say A is software professional who wishes to buy an apartment in a building worth 2 million INR (Indian National Rupees) = 45000 $. He approaches a bank for loan. The bank is not satisfied by his capacity to pay. Now the loan officer prepares a scheme in which the person is granted loan but at a higher rate of interest than normal. Result : A gets the loan but a higher rate of interest and he has mortgaged his new apartment.   Fallout :Due to slowdown in economy and host of other reasons interests begin to rise. People are unable to afford to pay installments. Those who have already taken loan are crumbling under pressure. The prices of property are falling because fewer people can afford to take a loan at the new increased rates. Outcome : People are...

Everyday some of the big brand name company is being sold, declared bankrupt or is said to undergoing   restructuring ( i.e downsizing) ,   rationalization (  shutting down units) ,   integration  ( 2 employee can do work of 4 , so differentiate their number and  integrate the work ) APPRAISAL  = euphemism of PINK SLIP( western culture of telling an emplyee at lunch time to clear the desk by day end and settle the accounts at the end of next working day.  Let us understand why all this is happening and why are we being pertrubed by this. Economy can never go up continously and neither it can go down simulateously. It is a matter of continous cycle. For those who can understand it is like the graph of a sine function or a sinusoidal wave.   We humans become bullish at the slightest positive indictors and feel we are doomed at the slighest unexpected negative indication. It is a normal phenomenon. in stock market they call them BULLS ( bullish)  and bears ( We are doomed) .  Whatever...