"Financial crash"

Today on tutor groups assembly we discussed this theme. Personally for me it was interesting, and I decided to write about it.
First we need to know what does a credit means.Credits - the money borrowed for some time under percent{interests}.It was practised even in ancient Sumer. Europeans can not imagine a life without credits.Because now there is no need to wait for accumulation of the necessary sum of money, practically any goods can be bought on credit.

So, what is the reasons of so-called "Financial crash"?
Economists are unanimous in opinion, that modern financial crisis is a direct consequence of crisis of hypothecary crediting in the USA (the share of the given sector in a national economy makes 1.4 %). Private American banks was so interested in a pursuit of enrichment, distributing to the right and on the left hypothecary credits, that in a category of happy proprietors of hypothecary habitation have entered also those Americans who were simply not in a condition on a regular basis to pay percent{interests} under credits. As a result the habitation almost in the mass order carried over banks, and there was not enough of people which would like to buy this habitation. The outcome of a similar state of affairs is quite predicted: bankruptcy of banks.

There is quite natural question: « How did they allowed occurrence of such situation? ». All is simple: the share market was occupied by players-speculators who were engaged in sale and purchase highly remunerative, but risky tools, creating financial pyramids. Roughly speaking, they put 1 dollar, and received 9, but that was a very big risk. In fact even small reduction of cost of securities could cause huge losses.

As a result the financial system of the USA has given failure - billions and billions dollars which have been involved in financial operations of the increased risk,simply, are illiquid. And then the investment companies and banks incur losses and become bankrupts. A situation become worse in the global financial market. In fact the American economy is similar to the huge octopus, shrouded with his feelers all planet : branches of the American corporations are opened almost worldwide, the American dollar, securities of the USA traditionally represent itself as the financial guarantor for other countries which with their help are protected from a various sort of risks. Therefore it is no wonder, that crisis of hypothecary crediting in the USA has responded financial "pain" to all world.