Are the US mortgages the cause of the next economic crises?

@roro75 (13)
Netherlands
August 2, 2007 5:26pm CST
Over the years the average american is financing his luxuries by making debts. Now we see a situation where companies might go bankrupt as mortgages are not being paid. When those companies fall down, will this cause a major crises on the financial markets of the world? And will we have a bad economy like the 1930's?
2 responses
• Canada
13 Sep 07
I think the US mortgage situation has already started to adversely affect the world economy. World wide funds that include US mortgages are dropping in value due to the mortgage crisis. Some stocks are also declining over fears of the US crisis. Investors world wide are taking a hit as a result. Governments and central banks in many countries have had to step in and bail out some companies, freeze funds, and inject money into the market to prevent further collapse. I think it's already hit - it's just a matter of how much worse it will get.
@venshida (4837)
• United States
2 Aug 07
From everything I have being reading, it looks like it might cause a problem, but I am not sure to what extent.