Against the Financial System and Behind the US Property Market Crash: A Monetary Study in an Islamic Perspective

Abstract

The property crisis that occurred in the United States, hundreds of news stories have also explained what happened at that time. The catastrophic financial collapse of the United States through The property market is approaching slowly and gradually.   Active bonds on mortgage lending are not immediately depreciated. This is seen in several sequences of causes of financial tragedy. First, the loan is required to repay an unbearable amount. Then the bankruptcy procedure begins after that, followed by the bankrupt borrower's property being prepared for sale. All of this happened just a few months (the condition of mortgage bonds occurs like a disease but is very dangerous). The first thing to understand is "leverage," which is the culprit. The second thing about the chronological history told in the film is the use of the product "Prime Mortgage". Then came a product called "Prime Mortagage" This product is like a homeownership credit. People who want to buy a home can get credit from a lending bank.   The initial problem occurs when investment banks buy (KPR) at very high prices in the hope of making a profit, and banks get income from installment payments by homeowners. However, banks use leverage to buy (their mortgages).