Warning About Money Questions
|
Mahalo Answers is a great place to start your research into Money questions, but it's not the final answer. Mahalo Answers is not a substitute for informed professional advice. If you desire or require professional advice, please consult a qualified provider who is licensed in your state or country. You should always seek independent professional advice before acting on any opinion, advice, or information available on Mahalo Answers. |
answered question
0
Votes
Votes
2
Answers
Answers
M$0.00
Why did a rise in home foreclosure destroy banks in Japan in 1990s?
The Japanese banks were unwilling to write off bad debt and extended their deflationary recession for 15 years. When the Japanese real estate bubble burst debtors could not keep current on their loans and were forced to turn back collateral to the bank.
Why did foreclosures cause Nationalized Japanese banks to fail?
Why did foreclosures cause Nationalized Japanese banks to fail?
answers (2)
no government to give them all the tax payers money. They took their homes and couldnt sell them...
| Asker's rating: |
I'm not 100% on that subject but as I can see if people can't pay off there homes the house is taken back by the bank and then they try and sell it. If the new value of the house is much lower the bank never gets it's money back. This could happen a couple of times and they could cover there losses with the profit they make but if it happens to much they loose it all.
Related questions
140 characters left
ask any question
