Human behaviour and its impact on credit crisis

1. CREDIT CRISIS AND HUMAN BEHAVIOUR

2. To learn how this credit crisis happened we will have to look into the actual process where it all started . INVESTORS DAWSONS FAMILY

3. Dawson's are interested to buy this house. FACTORS : Very less money House prices are increasing every day Needs money which can be repaid easily . MORTGAGE BANKS BANKS can solve Mr Dawson's issues . 1) They can provide a mortgage to help him buy this house at a very easy repayment option

4. BANKS Insurance Co. ETC. Mutual Funds Individual savings Soverign funds pensions funds WHERE DO BANKS GET THIER MONEY FROM ? We have listed a few sources above .

5. BANKS Banks now starting getting their monthly instalments paid by the families who took the mortgage at a particular rate of interest .

7. And this meant that the banks would receive their invested money back with profit (the interest received for the mortgages provided).

8. Mortgages were for long term period .

9. Investors started offering banks a nice deal in return of these mortgages .(As they would not be able to get such better returns anywhere else.)

12. BANKS

13. BANKS

14. BANKS LAWSONS FAMILY

18. BANKS

19. BANKS

23. Customers : Social Status

26. Threat of punishment.

27. Preferred to be directed.

28. Avoid responsibility.

29. Motivated by monetary gains( performance appraisal-incentive, bonus & profits.)

31. Kirti Patel Parth Shah Joy Purohit Rakhi Naidu Team Leader Dimpal Patel Pranali Shinde Madhvi Lola Group Dynamic

32. Thank You

33. Question...?