massive reduction in cash flow problems and credit raiting in banks (for the first time in (Northern Rock) in April and May 2007 and since 2005, the range of problems such as results in the real estate crisis, the influence on bank assets and devaluation of the demonstration effect bankrupt on a number of banks have reached a crisis point in September 2008. financial sector has been considerably damaged by unprecedented growth rates decreased significantly after obtaining financial crisis and restriction of credit. In the structure of consumption, high cost is a forced negative influence on the masses of the savings of the population and therefore on investment size, also led to increased costs. therefore requires reduced because of two factors. (a second was partially formed by the influence of the former is connected to the reduction of winning companies and the collapse of their obligations). In 2007, for reducing oil prices , concrete experience uncoordinated by central banks separate countries in the use of credit regulation of money in currency rates, fiscal balance sheet planning. Substance of multidimensional, and different priorities difficulties, problems were mainly found in the difference in interest rates. Rising oil prices should have first been translated by the U.S. $ purchasing ability, but a number of countries around the world, imports of oil (which is reflected on the money) during milking, it invested U.S. $, it has raised the demand in the U.S. $ currency devaluation and conditioned on the yen Japan, the euro and the pound sterling. To start reducing the price of oil, the financial crisis had already been the United States, the election of the president with this in the U.S. have created an atmosphere for future Evolving better. Currently, countries around the world, reduce the principal and interest, therefore, the difference between them is decreasing. securities market has been significantly damaged by the devaluation of the assets of specific companies established by banks for loan securitization. (SPV) assets include commercial debt obligations (CDOs), namely, in this case, most mortgage obligations (CMOs), which represent one variety of obligations, provided in conjunction with active bonds (ABS) and mortgage bond securities. The pyramid real, in which all the following titles to the next level have been provided in part by debt level lower, but one of providing means for MBS has been a correspondent for real estate; this, the price of real estate part to cushion all kinds of securities. WHAT is going on in Wall-Street? Together with the banks, who can not cope with the loss caused by counting subprime loans and provide premium are criticized by experts from the financial centers of the crisis, the offenders were “quants” on Wall Street and major financial centers around the world. It is difficult to judge the point at one side, events are adequate to the adage “fish in troubled waters.” On one hand we can not blame institution financial credit aggressively to maintain market share, if it is motivated by the positive expectation, but only in the case of legal normative documents, regulating, just these regulations shall be given an opportunity to banks and Other financial issues to behave irresponsibly and indecently towards applicants and funds of the debtor (or it would be more accurate to say that they should not have done it that way). As bettors millionaire in casinos Monte Carlo. regulatory frameworks exist (as prescriptive regulations, namely, the ratio of risk assets to capital ratios, standard requirements for liquid reserves, limits of open currency positions and other arguments for protection official) do not or can not meet the new methods of risk control, the development of credit derivatives and expanding operations to equilibrate. Herewith, the compensation bonus, employees who is actively used as a system of reimbursement by western financial institutions (of course, we do not only brokerages). This increases the interest of the agents of growth in the size of bids and increase the conflict of interest Once the transaction offers the agent, growth in premium payments, but in reality, the main threat with a loss of potential. Now back again with “quants” and mathematical methods, which in some kind based on exact science, but like resistors sophisticated math above, which is for example connected to the correlation of two functions or source of inspiration and the same number, which is the result of two new correlation functions. It is paradoxical, but that detail is transforming science, built on the basis of the elementary to the most complicated and most common concepts and dichotomy of the discontinuity of time. (The latter is universally recognized philosophy). It sounds again paradoxical, but wisdom is in simplicity and function of Georgia Ilia Chavchavadze writer, there are no miracles large and small. sophistical models, which use multiple levels and methods of multivariational analysis, often lose sight of their use in monitoring of assets and obligations, it creates self led to new risks. Moreover, most of these models are far from elementary basis and accordingly analysis results are difficult to grasp and sometimes inessential. It must be said that in recent years, financial management programs are available on the Internet and providers try to advertise their products through the annotation scheme difficult and multidimensional versions promo incomplete between there are many facts of amateur creativity. Sometimes, the part of managers and skilled Uindly monitor the use of these systems with confidence. In addition to erroneous decisions and problems, we must not forget the problem of villanios and act unbecoming of managers and staff in general. It is important to consider the fact of misleading shareholders and the markets with asymmetric information for the desirable goal. Recently, this type of incident occurred at the Company Generalr after revealing that management has made a series of “elaborate, fictitious transactions” in 2008, hoping to cover this problem According to other accounts and E 5 billion fraud that had been informed by recent scholarship and shifted the blame onto the employee. The fact that the amounts are so large gives an indication of how everything is leveraged TODAY ‘hui and how equal positions are volatile – conclusions are up to the reader. RELEVANT ASPECTS AND the crisis effectively. And always, in practice, what is a major virus, who developed the syndrome, immunodeficiencies and collapsed the whole economy and its vital financial system? only separate aspects may be shown as part of the problem and that on the basis of diagnostic symptoms partially revealed. According to the, if the causes and effects problems that we connect with each other and discuss further. The remaining issues will be presented comperatively in a narrow sense or in other worlds, we fail to restore the reality of the case completely and effectively to problems . So far, it is beyond the human mind imagine more complex three-sphere Dimension. It is theoretically proved and is implemented in the risk assessment and computer modeling and system control. The relevance of uneven quality confidence of financial managers, and ordinary people to produce not completely filled with cybernetics and also the single largest economic illusions virtual outgrowth of scientific and technological revolution models simulational financial resources, or take other risk portfolio management, has radically changed the understanding of reality, the attitude towards risk, future achievements and they turned into the main factors in the provocation decision-making approaches to non-natural inter-and large-scale proportions. It is really difficult to define for the first time, what was the reason sacrifing functioning of billions of dollars of securities – the global financial crisis or general economic problems. The tendency of the vector in these interactions will occur in response to problems which will be discussed and at what level or in other words, the direction of this vector is the change in the dynamic development of crisis. credit problems and raitings liquidation in bank credit organizations were almost less than before the crisis reveals, not because of the fact that credit risks are not increased, but were simply moved into the accounts prevail. The reason is one way – as a factor in increased risk of not having been used in the calculation of assets, according to the risk of claims settlement. Instead of hiding risks and liabilities beginning in order to draw cash flows, the use of security and credit derivatives are devilishly effective, although the response regulators discovered quite late and light. INFLUENCING price changes on real estate? OF an escape from the restrictions related to regulatory arbitrage and 10-15 years, the prognosis in place is based on trends in economic growth, pushed up credit managers in the expansion of credit very fat. At the initial stage, He has consumption boom, price growth in housing and the economy. In the background of increased activity, companies seek to increase cash flow and bond issue securities, and other obligations, in collaboration with the emergence of new companies and complex securities, potential investors. (among them, there are many unqualified people who most shares to buy time through the Internet, not only in because of their real income, but according to their interest rates without any serious risk analysis). The bankruptcy has increased the attractiveness of debt as much as possible, as if “financial ball” was “inflated” in respect of credit organizations, and removed the credit industry’s most rapidly growing economies of reality. Training “balloon” credit is tied to real estate and housing space. The price of growth, caused by an increased availability of mortgage credit, could be continued until the evolution of the situation on the housing market, although limited immigration in the United States and the United Kingdom reduce applications for housing in these areas, huge markets. Banks were interested in increasing real estate costs. It can be explained by the following conditions occurs: mortgages were provided with apartments for sale and their prices accordingly market defines the existence of any loss or size of appropriations in the event of default by the debtor, until the term expires or before default, the letter of credit or appropriate safety stabilized by it, as the cost of assets. The interest of the creditor, linked to the growth of house prices is against the debtor that is most critical during the period of mortgage money more in funds flow increases the share of spending: the debtor’s funds flow is the most important component of financial responsibility. intact until the growth of house prices, therefore a large number of debtors and strengthening competition between credit institutions: the motivation to break down fresh credit analysis of borrowers by banks, credit insurance, mortgage conditioning be enhanced and, in fact, this priority is the analysis of creditextreme situations. However, this request is followed by banks, yet the important thing is not only the loan by the debtor, instead of the results of the analysis of credit (in particular, as the corresponding fund-flow), but the dependence on insurance while deciding on the credit means that the possibilities of default indices are rather high. Rising by 2-3% in the real sector of the economy, conditions of growth differentiation properties for the numerical inferiority of this covering credit debtors proved impossible. The apartments had been transferred to bank ownership, always returned to the markets of the real estate business. due to higher deliveries and frequent faults, the limit distribution of mortgages has caused disastrous fall in real prices of real estate. Meanwhile, he lies in sustaining the decline in mortgage loans. Trends in crisis and deteriorating asset quality, which has also conditioned the worsening problem of liquidity (During this period, reducing the credit rating, while frightened investors and hedge funds) did the banks to minimize the new credit delivery process. Real estate delivery has been realized using the mortgage and without that, the recession of the construction sector has not been delayed. Conclusions on any form of credit markets .. Let’s in the details and elements. All the above and other problems and tangible reasons the credit crisis of the primary sources of the financial crisis: 1. Although the credit, it was unclear to the experts, if the suitor (after paying) fail to generate cash flow to cover the mortgage. 2. It was nearly possible to cover the cost of the house buyable a mortgage or in other words, the debtor’s participation was minimal . 3. interest rates could be transformed into many types of loans increased significantly, this was not done by everyone. 4. Quite often mortgages has been used for other purposes by debtors to get cash. 5. Many loan officers and brokers pushed subprime borrowers CREDIT potential and helped create a fake profile (mask) of solvency in order to obtain bonuses, etc. Committee subprime mortgage .. We have already discussed the issue of solvency of the debtor in the economy section of costs and focus Ensurance. We will also note that the analysis of debtors is rather complicated. The problems origin are the following: The rapid spread of network marketing, development of the virtual economy, (where payments and revenues, software estimation is not fixed) were also difficulties in estimating skills management and the power of corporate relations and human capital conditioning increased the frequency of decisions inadequate. Herewith, banks, compared with rivals trying not to disturb potential debtors rarely demand documentation. Under the share of subprime incomplete documentation increased 25% (2000) to 43% (2007). Subprime credit due to lack of savings needed to reduce claims of complicity on the purchase of apartments for low income debtors. The forecast for the participation growth in apartment prices, acceptable risk mortgage loans. debtor with mortgages for the purchase of the apartment reached 14% in 2000 even if it was down 4% from next year and stopped at this level before revealing the crisis. The same voltage in the pacemaker important speculations mentioned. Given the high recognition and sure, agreed, giving credit subprime and credit derivatives (we mean, there was already in the fluctuations of the property market in 2001, a trend of slowdown in commercial sales and housing since 2005, also according increased risks, costs of operations rised nonbalanced risk control and the collapse of securities stabilized assets, due to the reduction in credit rating) to compensate for market risk has been developed by banks under the condition of grant funding for floating rate. If it has fluctuated between 10% -23% in mortgage loans, subprime one, and its amplitude were lower and more: 50% -70%. In General characteristics of models RAPOC, conseptional basic “risk-based profitability” is acceptable (in my opinion) on the level of credit and common on the theoretical level of investment that the criterion to confer Priority creditors homogeneous, either to select investment projects. But it must be considered-how it will be guaranteed and how often it changes the associated risks of interest rates for different amounts . In the case of large loans, growth in interest rates has a direct and complete information about the creditworthiness of contragent itself. But in reality, it seems that for people with less expertise in payment, interest claim was higher than in the case of mortgage loans. It must be said that in the case of corporate loans in the form of mortgage Providence () because of the connection to the risks of the businesses themselves, a Much of the asset is applicable. The banks have been manipulating the interest rate is not so often because they have been analyzing business plans and financial position of the maximum. Attached the possibility of diversification, according to the types of cases is higher, especially in terms of supply. Therefore, the credit crisis and quantities have been most evident in default under mortgage bonds. Supply easy to obtain, as in all cases was presented by real estate in the default case, moved to the ownership of banks and, after being offered to the market, which influenced on the offers increased crisis and it was difficult for them to repay the default through the achievement mortgage. At the same time, due to the practice of so-called “air” for sale, some of incomplete flats was not completed at the date of default. Because of falling prices, the construction boom in the first place was changed to stagnation and recession, then the case was revealed. The chart shows the dynamic price indices of houses, as the basic level in 2000. As seen from the list of selection in 2005, prices have fallen sharply, but the number of vacant houses are increasing. In Due to the decline in new construction, this growth is mainly pursued at the expense of apartments confiscated by debtors and creditors, who made the list fat. With credits “corruption” and increased liquidity problems, some of Banks have stopped giving, even other types of loans or makes strict conditions. Many banks experienced difficulties in the reorganization of the standards of protection problems settlement, capital and liquidity ratio; from failed banks . Since the beginning of the crisis in the U.S., so far, the number of commercial banks declined by about 7280-700. (It is made sense to name the exact number, the process of unity between banks and their failure are ongoing. It has become necessary to atone for the huge subsidies, Fannie Mae and Ginnie Mae by the Federal Reserve system. Expanded loan broker is one of the most environmentally important. The share of so-called “wholesale lending” the size of the total credit has increased from 60% in revenues in 2004 to 90% in 2007. It’s natural that mediators credit (but only brokers non-market) are less interested in ensuring loan repayment than banks. interest loan officer (credits were issued to customers under the same solvency) was caused by the system of payment of a wage premium, credits issued by, what we have already mentioned above. competition gave the banks to meet the interests of borrowers in cash related to credit, thereby reducing debtor and applications to participate are the potential borrowers to use funds without purpose. It led to a poor management system. (thus the disadvantages of the system itself and the inadequate assessment of the nature). 15 year old economic development without barriers people were thinking that without increasing the real sector of production, goods and services, enrichment were quite possible. financial sector has made a colossal, oppress Titanic on the real sector of the economy . Today, only 2-3% of financial transactions within the real sector, but still work within the funds of funds. current global financial economic crisis “of the Great Depression, almost after 80 years further confirms that the self-speed economic development not only within the maximum possibilities – because he is attracted by Keens and representatives of other statism”(French. State. State) point of view, but it became world’s highest pyramid differentiation property, which is now upside down and the oven with a single touch, threat of destruction. For the collapse of the pyramid, just break one of lines connecting equilibrium and such was the credit line, stretched between the balance and strengthening of banking giants, (here is not intended to “credit line”, defined in particular in terms of economic terminology) which has been “suspended in the sky”. We will see that the construction of new houses was happening, as the pyramid scheme, in the way the apartments in the multi-storey houses have been sold, without have the foundation under. These interrelations, in the case of real situations is even necessary for the stimulation of economic growth, but while the prognosis, the distinct nature of conservatism is necessary. analysts agree that the main reason for the crisis present, are not the problems of mortgage markets in the U.S.. mortgage is connected to the real economy, which in turn is an essential instrument of investment demand. mortgage liabilities in the United States complies 12-13 billion, but in world currency markets, the size of operations combine the two billion dollars in one day and then only 4-5% of transactions in the real economy and the rest of the money It is speculative. The scale of speculative activity grew at a colossal speed from -12 to 15 in% a year. monetary system, which has made such an error can not exist long. He shook the Property Institute private., which requires real, not virtual money. The first signs of crisis in general, the influence on banks, and then only on the sectors of real economy, and, after all, it moves into the sphere of government financial and budget system. As analysts say, today we are on the first stage of the crisis. As we know, each year 50 billion dollar cost of goods and services are products around the world, just that money is in contradiction with the values of $ 1.5 quadrillion in value, such as public and private bonds, stocks, bills and so on and so forth. central banks other countries, with the help of the global financial system, began billions of dollars flow. In separate stage, he helped the situation, but temporarily. According to some analysts, it is impossible to complete the $ 1.5 quadrillion cursed hole, and even the total cash reserves of U.S. and euro zone central banks will not, moreover, a pseudo-currency, known as securities can be converted into cash. What should we do? “According to analysts. In the world order is not on the brink of global catastrophe, they must work in two directions: Continue economic accounting real, if only the existing level now being maintained. The first meaning is quite difficult, but necessary. Each new day is born Information to “economic disaster” and the reason is the credit freeze. financial structures just want cooperation with the owners’ money. Although the crises of capital destroy everyone.’s point of view of experts, a means of survival in the economy is to involve as many as possible capital in the economy. The size of the recapitalization should be spread more and more, and state control should be maintained in order of men near the nationalization of the large share of the financial system, but only temporarily. Then, when the situation returns to normal diet in again begin denationalization. Experts example of this is Switzerland, which, after the struggle against the crisis in early 1990, managed to return to its new shares in the bank. Due to the crisis, a number of countries , complete or partial nationalization took place. Lately, Great Britain placed 50000000000 pounds (about 64 billion pounds) to recapitalize British banks. Much of that money – is 37 billion pounds for the following banks: Royal Bank of Scotland HBOS and Lloyds TBS. In return for this, it is intended to provide shares of Royal Bank of Scotland and HBOS packet transfer control of the state. It is assumed that the temporary nationalization of banks will last longer. As We mentioned above, this is only the initial stage of the crisis, but Forethought economist and realize after the New Year, which collapse of many well known banks, industries, laboratories, universities, and after the future all people. In a way the bank area, although temporarily sighed, but the real sectors of the economy remained without money. banks do not issue money, not more. This causes a terrible tendency huge problem not only for the real sectors of the economy but also for individual countries. Many countries directly from appropriations in the financial institution and if the situation does not change, a number of countries like Pakistan Argentina, Mexico, Hungary, Ukraine and other ad against the danger of default. In addition, at the end of 2008, Iceland itself was on the verge of realization of the risk factor and the British Financial Institute, were blamed for that. “Fighting” methods against the crisis. Different methods of treatment are used in different countries against the economic crisis. In a particular sphere of the economy, the fight against crisis, a result may be subdivided into three types: I. When the total contribution amounts in the financial area, or if very, that America has. It has $ 2.3 billion on aid to banks but to support