Friday, March 7, 2003

Alternative credit for this 2012

When you need money usually asks a bank. Until recently accessed the bank happy to offer almost unimpeded. Were typical cases of people with an employment contract recently received a € 300,000 loan to buy a house. The system worked perfectly. The banks charged their fees, the floors were sold well above their actual value and the construction work was not scarce, a fact which benefited other sectors and not just in the same field.

The problem arose three years ago when it was found that from the U.S. had been providing money without any security to a large number of people. Besides not having any assurance that this money would be returned to other banks made sure that those credits were of high quality, so that traded with them.

Once the cake was uncovered and the truth came out there was panic among the banks. They stopped lending to each other and stopped lending money to ordinary people. No money to start projects or continue feeding the housing bubble broke the system. All that money games that people had used to buy houses and cars and everything must be returned in a climate of unemployment. Default rates soared and some banks went bankrupt.

After 3 years it seems that everything is not only not improved but has stains worse. The ways to get funding remain few so many companies and people can not pay money to enable them to take more time to fix the situation.

However, whereas previously it was asked for money to buy houses now offer homes as collateral to get money. These are known as private loans. Private lenders are people who have managed to accumulate cash to invest. Its mission is to provide capital to those who do not have it but you have to secure the investment property. Private lenders of money are private lenders, ie unrelated to banks or institutions, although there are companies that are responsible for bringing together supply and demand.

Thus it is trying to alleviate one of the drawbacks to this crisis, lack of liquidity. This is what looks like a solution to a problem that should not extend more than 10 years because if so the whole system would be compromised.

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