RSPH Blogs - Finances!

  Today, In this article, I'm gonna explain you everything you need to know 'bout the Great Recession! So lets start the explanation.... So, it is the Year 2001. & the Dot Com Bubble have bursted recently.... So no one was really willing to invest in Share Market during that time & neither were the investors willing to keep their money in the Banks; that was because the interest rates were too low, during that time.... to be exact the interest rates were around 1%, during that time. So investors were in a search of a new profitable investment opportunity. Banks were giving loans to people (home loans to he specific) & 'cuz the interest rates were low.... people were willing to take loans (as they had to pay low in interest). Which means that there were mortgages, basically! You know mortgages, Its basically a document in which the borrower agrees to pay the money they've borrowed.... to the lender on time with interest. So its kind of free money

  Its the time of the 1920's. The US Economy was one of the fastest growing one's. From the year 1920-1928.... The US Economy grew very rapidly! Within these years the US Economy was working pretty smoothly! The companies were manufacturing new goods & products All the people were buying new stuff from the Companies.... like washing machines & cars, etc. The banks were giving loans.... which memas people can have more to spend. The Share Market was also performing pretty well & investors were being able to generate good returns for themselves! As the companies are getting more funds they are able to manufacture goods in large numbers to meet the grewing demand of the growing population! So, 'cuz of things were so good from the year 1920-1928 .... we often refer to them as the "Roaring Twenties.... But why don't we call the other upcoming years so? Heres why? So now here's a turn OR you know, there was a so called turn within the US Eon

  Today we are having a look at one of the Bubbles from history: The Dot Com Bubble! & its key factors of what caused it & what made it burst & exactly when.... So here we start.... Starting from the very beginning---- In the year of 1986, The Internet was quite new but had gained popularity among people quite rapidly. So the Tech Companies were one of the well performing one's. Now, after having a look around.... 'bout the Internet's popularity & its growing usage.... Investors thought that the Tech Companies are gonna pay off high returns in future because of their popularity & future potential (as predicted by the Investors!).