Recent Debt Crisis: Uk, Us, Malaysia
Acknowledgement
First and foremost we would like to say, Assalamualaikum , peace be upon to you, the reader. We would like give many thanks to Allah the Almighty for permitting this work to be materialized into existence.
An honorable mention goes to our family and friends for their understanding and support for us in completing this project. Without the help of the mentioned above, we would face many difficulties while doing this. Colleagues and classmates, thank you for the never ending help and assistance and cooperation throughout the entire project.
And lastly, to the most admirable and ever graceful Sir Shazali, our beloved teacher, lecturer, and source of wisdom, thank you for letting us see the financial market through your eyes. Thank you so much. He inspired us greatly to work in this project. Her willingness to motivate us contributed tremendously to our project. We also would like to thank him for showing us some example that related to the topic of our project. Besides, we would like to thank the authority of UiTM Melaka for providing us with a good environment and facilities to complete this project.
Thank you all.
Introduction
Debt, what is it really? It can be defined as a relationship between a borrower and a lender. The borrower is called a debtor and the lender is called the creditor. This relationship can extend from a couple of individuals to mega corporations and as well as nations.
It all started in the United States. In the beginning, banks are and other lenders are doing well. Interest rates were low and cheap loans were available and they lent money and keep on debt with no problem. They had so much money that they invested their money into another market which at that time, called, the subprime market.
The banks and lenders lent money to unreliable borrowers to people with lower income, first time borrowers, and last but not least to those with poor credit history. Soon, many of these borrowers bought
First and foremost we would like to say, Assalamualaikum , peace be upon to you, the reader. We would like give many thanks to Allah the Almighty for permitting this work to be materialized into existence.
An honorable mention goes to our family and friends for their understanding and support for us in completing this project. Without the help of the mentioned above, we would face many difficulties while doing this. Colleagues and classmates, thank you for the never ending help and assistance and cooperation throughout the entire project.
And lastly, to the most admirable and ever graceful Sir Shazali, our beloved teacher, lecturer, and source of wisdom, thank you for letting us see the financial market through your eyes. Thank you so much. He inspired us greatly to work in this project. Her willingness to motivate us contributed tremendously to our project. We also would like to thank him for showing us some example that related to the topic of our project. Besides, we would like to thank the authority of UiTM Melaka for providing us with a good environment and facilities to complete this project.
Thank you all.
Introduction
Debt, what is it really? It can be defined as a relationship between a borrower and a lender. The borrower is called a debtor and the lender is called the creditor. This relationship can extend from a couple of individuals to mega corporations and as well as nations.
It all started in the United States. In the beginning, banks are and other lenders are doing well. Interest rates were low and cheap loans were available and they lent money and keep on debt with no problem. They had so much money that they invested their money into another market which at that time, called, the subprime market.
The banks and lenders lent money to unreliable borrowers to people with lower income, first time borrowers, and last but not least to those with poor credit history. Soon, many of these borrowers bought