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How have bank mortgage rates changed since the housing bubble has burst?
Wiki User
∙ 12y ago
Since the housing bubble burst, bank mortgage rates and decreased. This makes it more affordable for people to get a loan and be able to purchase a house.
Wiki User
∙ 12y ago
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What will the burst of the tech bubble mean to the average person?
shiz is gonna go DOWN
The expression burst their banks means a Eroded their banks b Overflowed their banks?
The expression burst their banks means that they overflowed their banks.
What are the reasons behind up and down in share market?
The stock market story There were 3 citizens living on this island country. "A" owned the land. "B" and "C" each owned 1 dollar. "B" decided to purchase the land from "A" for 1 dollar. So, "A" and "C" now each own 1 dollar while "B" owned a piece of land that is worth 1 dollar. The net asset of the country = 3 dollars. "C" thought that since there is only one piece of land in the country and land is non producible asset, its value must definitely go up. So, he borrowed 1 dollar from "A" and together with his own 1 dollar, he bought the land from "B" for 2 dollars. "A" has a loan to "C" of 1 dollar, so his net asset is dollar. "B" sold his land and got 2 dollars, so his net asset is 2 dollars. "C" owned the piece of land worth 2 dollars but with his 1 dollar. debt to "A", his net asset is 1 dollar. he net asset of the country = 4 dollars. "A" saw that the land he once owned has risen in value. He regretted selling it. Luckily, he has a 1 dollar loan to "C". He then borrowed 2dollars from "B" and acquired the land back from "C" for 3dollars. The payment is by 2 dollars cash (which he borrowed) and cancellation of the 1 dollar loan to"C". As a result, "A" now owned a piece of land that is worth 3 dollars. But since he owed "B" 2 dollars, his net asset is 1 dollar. "B" loaned 2 dollars to "A". So his net asset is 2 dollars. "C" now has the 2 dollars. His net asset is also 2 dollars. The net asset of the country = 5 dollars. A bubble is building up. "B" saw that the value of land kept rising. He also wanted to own the land. So he bought the land from "A" for 4 dollars. The payment is by borrowing 2 dollars from "C" and cancellation of his 2 dollars loan to "A". As a result, "A" has got his debt cleared and he got the 2 coins. His net asset is 2 dollars. "B" owned a piece of land that is worth 4 dollars but since he has a debt of 2 dollars with "C", his net asset is 2 dollars. "C" loaned 2 dollars to "B", so his net asset is 2 dollars. The net asset of the country = 6 dollars. Even though, the country has only one piece of land and 2 dollars in circulation. Everybody has made money and everybody felt happy and prosperous. One day an evil wind blowed. An evil thought came to "C"'s mind.'Hey, what if the land price stop going up, how could "B" repay my loan. There are only 2 dollars in circulation, I think after all the land that "B" owns is worth at most 1 dollar only. "A" also thought the same. Nobody wanted to buy land anymore. In the end, "A" owns the 2 dollar coins, his net asset is 2 dollars. "B" owed "C" 2 dollars and the land he owned which he thought worth 4 dollars is now 1 dollar. His net asset become -1 dollar. "C" has a loan of 2 dollars to "B". But it is a bad debt. Although his net asset is still 2 dollar, his heart is palpitating. The net asset of the country = 3 dollars again. Who has stolen the 3 dollars from the country? Of course, before the bubble burst "B" thought his land worth 4dollars. Actually, right before the collapse, the net asset of the country was 6 dollars on papers. His net asset is still 2 dollar, his heart is palpitating. The net asset of the country = 3 dollars again. "B" had no choice but to declare bankruptcy. "C" has to relinquish his 2 dollars bad debt to "B" but in return he acquired the land which is worth 1 dollar now. "A" owns the 2 coins, his net asset is 2 dollars. "B" is bankrupt, his net asset is 0 dollar. ("B" lost everything) "C" got no choice but end up with a land worth only 1 dollar ("C" lost one dollar) The net asset of the country = 3 dollars. There is however a redistribution of wealth. END OF THE ANECDOTE "A" is the winner, "B" is the loser, "C" is lucky that he is spared. ANALYSIS TIME Few points worth noting: When a bubble is building up, the debt of individual in a country to one another is also building up. This story of the island is a close system whereby there is no other country and hence no foreign debt. The worth of the asset can only be calculated using the island's own currency. Hence, there is no net loss. An over damped system is assumed when the bubble burst, meaning the land's value did not go down to below 1 dollar. When the bubble burst, the fellow with cash is the winner. The fellows having the land or extending loan to others are the loser.. The asset could shrink or in worst case, they go bankrupt. If there is another citizen "D" either holding a dollar or another piece of land but he refrained to take part in the game, he will, at the end of the day, neither win nor lose. But he will see the value of his money or land go up and down like a see-saw. When the bubble was in the growing phase, everybody made money. If you are smart and know that you are living in a growing bubble, it is worthwhile to borrow money (like "A") and take part in the game. But you must know when you should change everything back to cash. Instead of land, the above applies to stocks as well. The actual worth of land or stocks depend largely on psychology.
Do you capitalize 'real estate'?
You do not need to capitalize the phrase "real estate" if used as a common noun. Example sentences: I invested my money in real estate. Her real estate investments increased in value. We looked at real estate in the northern area of out county. If you use it as a proper name, it needs capitalized. Example sentence: Big Deal Real Estate, Inc. opened its new office on January 30th, and closed on January 31st when pipes burst and flooded the suite.
What kind of business is owned by stockholders?
Corporations Corporations distribute ownership stakes in the form of shares, also called stock. In many private corporations, all of the stock is owned by one person or family. That one person or the family members that own the shares are all shareholders. Public corporations, those firms whose share trade on a public stock exchange (i.e. The New York Stock Exchange, NASDAQ, etc.) are also also owned by the people who own the stock. The distribution of the stock of public corporations is usually much, much larger than of private firms. Many large corporations (i.e. Microsoft, GE, Exxon-Mobil) have more than one million stock holders. All of those businesses are owned by the people who own the stock. The more stock one owns, the more of the business that person owns. As to the kind or type of business owned by stockholders, the short answer is "for-profit" businesses. Almost any kind of for-profit business can use the corporate form of ownership. In the past, there were strict requirements issued by the stock exchanges that businesses had to meet in order to list their shares. Those requirements included a certain level of revenue, a history of profitability and/or a threshold of assets owned. In the "dot.com" era, many of those requirements were set aside as very small companies who had yet to make a profit needed access to the capital markets to raise money to grow. When markets for those firms products and services did not materialize, the small size of the businesses and lack of tangible assets left many of those stocks worthless which is part of the reason the burble burst in 2000-2002.
When did the housing bubble burst?
Greed.
When was Burst the Bubble created?
Burst the Bubble was created in 2002.
What is the average cost of a house in 2002?
The average cost of a new home in January of 2002 was $187,600. There was a housing bubble in the United States that started in 1998. The bubble peaked in 2006. In 2007, the bubble burst.
What are three sentences for the word bubble?
She blew a huge bubble.The housing bubble burst. The ill boy lived in a bubble to prevent infections. Do you have any bubble gum?
When did the Great Bubble burst?
1929
Are there expressions with the word bubble?
Yes, expressions like "bubble up" meaning to rise to the surface, "living in a bubble" suggesting someone is isolated from reality, and "bursting the bubble" signifying a sudden end to a period of optimism or false hope all use the word "bubble."
IS Mew on Platinum?
Sorry to burst your bubble, but NO.
Are catgirls real?
Sorry to burst your bubble, but no.
Can human levitate?
sorry to burst your bubble, but uh no!!
What is a tsynami?
Hate to burst your bubble, but there is no such thing as a "tsYnami"
What is an hypothesis for dry ice?
Hypothesis: I think the fog will affect the bubble and the expect that when all the fog builds up into the bubble the dry ice bubble is going to burst. I think that because when all the fog from the dry ice builds up in to the bubble then it is going to burst.
How do you get better a basketball?
you cant. you never will. sorry to burst your bubble.
