economic crises FROM MYE VIEW.....

after soo long i came back n wann to talk about economic crise 

the tsunami of american wild west has made a devastrating impact on whole world market

wel as like everyone we indian also deeply affected by it........moreover we not only affected but many company has got themself into a live bombshell

recently some news got into exist that americas biggest motor manufacturer GENERAL MOTORS is facing severe financial problem n asked for help from fedrel reserve.............

but wat was the reason FOR ALL THIS FINANCIAL CRISES

i hav GOT THESE POINTS

• Resently few days back when we are not facing alll these when all was going god n great, companies have raise salary of there executive n this has raise there living standard.
• These requirements have made them to buy flats i.e. they invest there money in real states.
• they buy lots of flats in america n india n place them in bank N GOT HUGE LOANS.IN TERMINOLOGY WE CALL IT "SUB PRIME LOAN" or "margage loans".
• but becouse of some reasons shares of real state has fallen down so market value has just crashed.
• as market goes down companies has to reduce there salary so there living standard effected.so unable to pay the instalment to the bank in order to clear there loans.
• meanwhile prises of real state also affected n market value decline.
• this made people to save money as salary goes down .
• those who have taken loans. instead of giving installment they handed over there property to the bank in the form of final money/instalment.
• now the ball is in banks side & they have to sell these property to recover there money.
• but they are unable to do so because of the gradual decrease in the prise of real state.
• so bank are now unable to get money from the market.
• these investment are so big and vast as they have use there money in market but unfortunatelly they loss this match.
• n finally they have nothing in there vault.
• some of the banks are LAHMANN BROTHERS, MERRILL LYNCH
• IN INDIA "ICICI".

AND FINALLY THEY HAVE TO SAY THAT THEY ARE "BANK CORRUPT".

SO FINALLY I WANT TO SAY THAT PLEASE DON'T TAKE LOANS .

BE SAFE

N HEALTY

SO DO WEALTHY

N BUY PROPERTY.

RISHABH SHUKLA

BTECH 2ND YEAR