Hamburger crisis is the crisis that occurred in United State around the end of 2007. This crisis start from the policy of United State’s government by changed the policy of giving credit to customer. At first, bank tried to chose the best customer for give them a credit. After that bank needs more customers, so bank give a credit to unemployed customer. At first, everything was going well, then most of investors turn to invest on the property in order to speculate those property. They know that in the future the cost of property will increase to high price. Most of investors try to own all the properties and that is the cause of higher price for the properties. This crisis become “bubble economy”
On the Bank side, after the economic bubble, bank has an idea to help investor and consumer from that crisis by selling the mortgage to make investor come to invest their money with the bank again. After bank got a lot of mortgage, they sell in the mortgage in the lower price. The high risk of mortgage will sell in the low price and low risk mortgage will sell in the high price. In the first time, selling mortgage was going well. They sold a lot of mortgage.
After the bank sold a lot of mortgage, there were some bad customer that did not pay money to the bank and bank can’t get the money back. Most of the owners of property are selling their property, because they don’t have money to pay. Follow by the rest of owner, they also sell their property and it makes the demand decrease, that means the price will go immediately down. Now the crisis is turn up side down, most of investor tried to selling all of their properties before they loss to much money. After the price was low, the best customers of the bank stop pay money back to the bank and leave the house, let’s bank takes the house and buy the new house that cheaper than before.
At this time, all the mortgage can’t be sell any more and the economy of United State was going really...