The economy goes through ups and downs. Banks and other traditional financial institutions will want to reserve their scarce capital for the most affluent.
The ill effects of the 2008 Sub-Prime Mortgage Crisis are still drying up capital sources to this day. Nevertheless, we will explain how to get emergency loans when unemployed.
When You Need Money Now
Your children are not going to understand if there is no food on the table. Your landlord is not going to understand why you are late with the rent. Your life requires money, so you can enjoy both the good things and basic necessities of life. This can be even more frustrating when you are a single father / mother and need an emergency loan.
Unfortunately, money problems are the primary source of arguments between husbands and wives. When you are struggling to make ends meet, it places undue stress, hardship, and pressure on all parties involved. If it continues, it can increase your blood pressure, lead to headaches, and cause insomnia.
If you are taken to the hospital, you will be given a hefty medical bill. And, how are you going to pay that? This can lead to a “Domino Effect” of bad things causing other bad things to happen.
Unfortunately, even if you tell a bank manager – “I need money now” – he may not listen. That is because he is part of a traditional financing system that might be outdated. Some say that the traditional bank became obsolete when they ran out of money during the 2008 Sub-Prime Mortgage Crisis.
2008 Sub Prime Mortgage Crisis Lingers
Why does the 2008 Credit Crunch matter today? In the banking industry, there are certain fundamental events that change finance forever. You might think of the Great Depression and the 2008 Sub-Prime Mortgage Crisis.
These two catastrophic events have a lot in common. First, both caused tremendous unemployment and financial distress. It took erica to rise from the Great Depression.
Secondly, they caused capital markets to seize up. Banks stopped lending to one another. Eventually, the government got involved by guaranteeing loans.
Afterward, legislators said that the entire capitalistic system was at risk during both crises. To deal with this systemic risk, they passed numerous laws to prevent it from ever happening again. Let us focus on the 2008 crisis for a moment.
After 2008, the supposedly “Too Big To Fail” [TBTF] banks were bailed out by the government. When this happened, many of them were forced to undergo numerous stress tests. These stress tests and other restrictions made the mainstream banks very timid in offering new loans to the poorest applicants.
Bank Loan Requirements
The traditional banking system can be a bit counter-intuitive. The primary loans are given to the most wealthy – governments, multinational corporations, and rich people. Why is this so?
The affluent have an easier time qualifying for http://onedayloan.net/payday-loans-mt traditional bank loans. They fit the ideal customer demographic of a traditional bank. Traditional bank loan requirements might include all of the following:
- Banking Accounts
- Steady Income
Whereas the unemployed might have the first two, they don’t have the last. Unfortunately, the largest banks are not very lenient, flexible, or accommodating. If you don’t qualify, they can find a wealthy individual who will.
Many large retailers are struggling to make ends meet. A few have filed for bankruptcy, leading to increases in the unemployment rate. John Williams and other economists have shown that the government’s reporting of the unemployment rate is not true.