A brief review of the origins of the financial system can become somewhat clarify the causes of the collapse of the financial system.
Financing or deferred payment is something that has existed in society for most of the story. Any transaction that leaves one party as debtor for a certain period of time is known as funding. Therefore, one can say that a prehistoric man receiving an animal head waiting later give a piece of fruit in return was being funded. The guarantees of these operations would not go beyond the actual word or threat of retaliation if the promise was not fulfilled.
Moving forward in time are discovered popularizing credits or payments that require trust in the seventeenth and eighteenth centuries. They are a consequence of the increase of the precious metals in colonial countries such as Britain, Spain, France ... Business transactions multiply necessitating a system that does not require the presence of money in all operations. He popularized the use of checks or bills of exchange. The bill of exchange was a commitment by the debtor to repay the debt to the creditor at a later time. Later he began trading with the letters, which meant going buying other debts with cash it up later.
This is precisely the system that has bankrupted precisely the current capitalist system. Since the United States began selling debt untrustworthy people. Under a high quality grade were sold to banks worldwide. When these debts could not be paid distrust in the banking system led to the closure of transactions. This led to a lack of funding which slowed overall economic activity in many countries.
Today the world of bank loans is in the air. Some calls regulate or control. The truth is that since the crisis began the requirements for getting a loan have grown greatly.
Financing or deferred payment is something that has existed in society for most of the story. Any transaction that leaves one party as debtor for a certain period of time is known as funding. Therefore, one can say that a prehistoric man receiving an animal head waiting later give a piece of fruit in return was being funded. The guarantees of these operations would not go beyond the actual word or threat of retaliation if the promise was not fulfilled.
Moving forward in time are discovered popularizing credits or payments that require trust in the seventeenth and eighteenth centuries. They are a consequence of the increase of the precious metals in colonial countries such as Britain, Spain, France ... Business transactions multiply necessitating a system that does not require the presence of money in all operations. He popularized the use of checks or bills of exchange. The bill of exchange was a commitment by the debtor to repay the debt to the creditor at a later time. Later he began trading with the letters, which meant going buying other debts with cash it up later.
This is precisely the system that has bankrupted precisely the current capitalist system. Since the United States began selling debt untrustworthy people. Under a high quality grade were sold to banks worldwide. When these debts could not be paid distrust in the banking system led to the closure of transactions. This led to a lack of funding which slowed overall economic activity in many countries.
Today the world of bank loans is in the air. Some calls regulate or control. The truth is that since the crisis began the requirements for getting a loan have grown greatly.
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