The Global Financial Crisis started in the summer of 2007 in the US.
The demand on real estates in the US was growing since 2004 and therefore the price of those did grow too.
A lot of people raised credits to buy new real estates as their value was increasing all the time.
That was up to 2006 when the value of those estates started to drop. So the banks wanted their debtors to provide more financial securities which they couldn't do.
Therefore the banks took the real estates back which had lost greatly in value up to that time. This led to the banks sitting on their real properties which no one wanted to buy.
As the banks needed money they raised credits oversea which led to the international aspect of the crisis where we find ourselves in now.
International Consequences
Schaeffler (they produce automobile parts) raised high credits to buy stocks from the company of Continental which you might know from the production of tires. But their shares did fall because of the Financial Crisis and therefore Schaeffler could go bankrupt in the next weeks.
If you buy a car in Austria and own one older than 13 years you will receive 1300€. I ask myself all the time how this should help all the people who don’t want to buy a new car in these times….
In Austria a lot of people bought shares in Eastern bloc countries. As no one wants to lend money to those countries nowadays many Austrians lost their money too.
In Spain the unemployment rate was lower than 8% in the 2nd quarter of 2007 as building enterprises raised high credits to invest in building a lot of new residential estates.
After the onset of the financial crisis the companies had to stop their building projects and today there are 3.3 million Spanish people unemployed. Financial experts predict 5 million unemployed people in December 2009.
These sad facts are just the beginning and if someone like the German Finance Minister Guttenberg says that the crisis will end with the 4th quarter of 2009 I somehow can’t believe that....
If you buy a car in Austria and own one older than 13 years you will receive 1300€. I ask myself all the time how this should help all the people who don’t want to buy a new car in these times….
In Austria a lot of people bought shares in Eastern bloc countries. As no one wants to lend money to those countries nowadays many Austrians lost their money too.
In Spain the unemployment rate was lower than 8% in the 2nd quarter of 2007 as building enterprises raised high credits to invest in building a lot of new residential estates.
After the onset of the financial crisis the companies had to stop their building projects and today there are 3.3 million Spanish people unemployed. Financial experts predict 5 million unemployed people in December 2009.
These sad facts are just the beginning and if someone like the German Finance Minister Guttenberg says that the crisis will end with the 4th quarter of 2009 I somehow can’t believe that....
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