Bankers are in crisis

The main cause in US for economic crisis is lending money to people for real state purchase. In US the people culture has been developed in different ways. People want to have a bungalow and car. People start to receive loan from bank and bank also stated to lend money without collateral. Huge amounts of money gone to real state proprietors’ bag. As a result drastically decreases cash mobilization and economy began to collapse.

The global economy is affecting in international labor demand. Whereas Nepal’s one of the most important foreign currency earning source is international labor market. On one hand, the global market is affecting to Nepal by decreasing the international labor deman plus firing the existing labor. The other hand the bankers are destroying our economy because they repeating US practice by investing in real state sector. Though the banker justification is, they are lending to people against their collateral. The budget cost/value of land and building is increasing dramatically. People are paying high cost because of easy bank lending system.
The repetition of US scenario, the cash mobilization will be decrease; huge amount of money goes to real state promoters’ bag. As a result, in future the people will not be able to repay their loan due to the income source cut-off. Bankers are feeling secure because they are lending money against collateral. But in reality, if the economy goes down their strong justification will also collapse. This situation is really threat to banker to re-collect the installment.


Link to an article: website is at http://www.richardccook.com/. (R ichard C. Cook is a frequent contributor to Global Research. Global Research Articles by Richard C. Cook)