what is the impact of the easy-lending policy of mortgage brokers in the united states on the stock exchange?

In: Mortgage Lending

27 Mar 2010

how has this threat in the ‘general’ environment impacted the ‘specific’ environment of firms



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2 Responses to what is the impact of the easy-lending policy of mortgage brokers in the united states on the stock exchange?

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Barbara E from Houston Texas

March 27th, 2010 at 6:01 am

Wow, I don’t know what your second sentence means, but as for the first:

1. Easy lending has led to people not being able to make the mortgage payments when the payments increase, and then, coupled with no increase in property values, even decrease, people have defaulted on the loans,

Then

2. The lending institutions are in trouble, and tighten up on the loans they now make,

Which means

3. People are having trouble selling their homes, and there is a general lack of confidence in the economy,

which causes

4. People to spend less money, which causes

5. Corporate profits to go down,

which then

6. Makes the stock market go down.

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mister ed

March 27th, 2010 at 6:15 am

not “is” should use the word “was” the stock market is at at a all time low — interesnt on cd is at rock bottom == it has hurt the dollor in the over sears market – it will take years to recover!!!

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