The effect of the mortgage cri̇si̇s Turkey global economy

Various financing systems, such as mortgage system, have been developed for facilitating home acquisition. A Mortgage Crisis was experienced in America due to American economic policiesandtheinclusion of implementations that hinders the effective operation of the system, the structural breakdown of mortgage credits; the disharmonization of the structure of interest; the balloon increments in the prices of house; congestion in stocks and bonds, expansion of credit derivatives markets, problems in credit rating process and saturation in real estate markets since 2005. Close and intense relationships between global finance markets and USA Mortgage market caused the spread of this crisis to global markets as well and mortgage crisis has turned into a global one. Due to intense external trade between Turkey and European Union countries,Turkey was also affected from the crisis like the EU countries. This study explains the concept and types of the crisis, the development, types and risks of the mortgage system in the USA which turned into a crisis in the long run, the Mortgage System in the USA and Turkey and the effects of this crisis on the Turkish economy. Effects of the economic crisis in Turkey started to be more significant especially during the last quarter of 2008 and were felt in all sectors of economy. The crisis negatively affected Europe and all world countries starting with the USA and presented its negative impact on various sectors such as production, employment, industry, tourism and banking.