On October 23rd, 2014, we updated our
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MORTGAGES: DEFAULT: can’t payoff mortgages FORCLOSURE: after defaulting, bank seizes your property MORTGAGE BACKED SECURITIES: home loans bundled together.
Values are unknown
Securities wont work if you stop paying mortgages
Loans from the bank to purchase property
You end up without a house
Bank ends up with a house
Banks are not in the real-estate business
REPOSS ---S ESSED PROPERTY OF THE BANK ________________________________________________ N O T I C E THIS PROPERTY HAS BEEN FORECLOSED BY THE BANK. HOMEOWNER’S FAILURE TO PAY OFF MORTGAGES. THIS PROPERTY AND ANY ASSETS ARE NOW OWNED BY THE BANK.
Treasury Dept. and Secretary Paulson have $700 billion at disposal
Will purchase bad mortgage securities from banks
Banks ability to give out loans is based on how much money they have
Bill is constantly updated and modified
Government & Banks
Expanded role with Banks
Purchased $250 Billion
Government has partial ownership
G8 GLOBAL ECONOMY ● Affecting the entire world ● Related stock markets ● Recession EIGHT COUNTRIES ● Mostly European ● Working with the U.S. COORDINATE THE ECONOMIC POLICY ● Global coordination DO WE NEED A NEW GLOBAL ECONOMIC STRUCTURE?