The US financial crisis

1. The Credit Crisis “ the US economy horror picture show” by Ryan A Graves October 2008

2. It used to be...

3. Get a loan from your loan officer (simple)‏

4. People buy homes with good credit

5. Then...

6. Banks begin lending to people with BAD CREDIT (ARM) – Adjustable Rate Mortgage NO PROBLEM

7. Banks promised that housing prices will continue to rise.

8. Banks start selling MORTGAGE BACKED SECURITIES* *Investments of packaged home loans These are fine if the housing market goes up...bad if it doesn't.

9. 2001 TECH SELL OFF

10. 9/11 shocks US and world economies

11. Fed drops interest rate to 1

12. Investors buy lots of mortgaged backed securities ...with very high fees

13. Real estate soars 10 – 20% from 2002 - 2006

14. Home owners spend like celebs using Home Equity Loans

15. Credit Bubble Housing Bubble Credit Bubble So this happened...

16. Fed increases interest rate to 5.25

17. Adjustable Rate Mortgages increase with interest rates Home Owners can't pay their mortgages

18. Home owners are forced out of their homes

19. Past Due sub-prime mortgages rise to 18.8% in 2008

20. Estimated bank losses $500B +

21. Wall Street banks go under FAIL FAIL FAIL FAIL

22. And now?

23. US Government digs deep to bailout the large financial institutions to the tune of... $750B +

24. Neither presidential candidate really has a clue what to do... Lets hope this thing works!

25. THANK YOU see more at http://ryanagraves.com Please vote for these slides in the “ Slideshare.net Credit Crisis in 30 Slides Competition”