The world was taken aback when the global financial crisis surfaced, it affected countless people and many were laid off because companies were left with no money to pay their salaries.The purpose of the outline "The Housing Financial Crisis" is to dwell deep into the real reason which triggered off the financial crisis…
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The housing crisis or the sub prime crisis is getting worse rather than cooling off, this means that the US economy is only going to get adversely affected and this in turn is going to affect all the major economies of the world. The labor market is also getting affected and this means that there will be less job opportunities in the future for the people seeking jobs. The sale of new homes has fallen by almost 50% in the US and people have stopped purchasing new homes in the US because of the housing crisis in the country. Body: I. What triggered the crisis? A. The crisis began in the middle of 2007 and into 2008 1. Affected all the major economies 2. The US economy was perhaps the most badly hit B. Almost the whole world started living on a shoestring, deep pockets were reduced to mere pockets and lucre had certainly fallen short. 1. Countless people got their pink slip while some other got their walking papers. 2. AIG, Lehmann Brothers, Northern Rock, Goldman Sachs are some elite names that suffered the most because of the economic crisis also known as recession. 3. Lehmann brothers filed for bankruptcy while AIG and a few other elites just hanged in there with the skin of their teeth. II. This economic crisis is still having repercussions on countries like Greece and Spain; there are a few other countries that have been not so severely affected by the same. A. The crisis triggered off because of unchecked debt, banks kept issuing loans to people who invested heavily in buying assets. 1. Several things were taken for granted but when proved otherwise there was hardly a place in the world to hide. 2. The subprime crisis triggered off because of excessive borrowing, there was no money to pay back and this is why so many financial institutes went flat broke. B. The Great economic depression triggered off in the year 1930 in the US, it was triggered off by the collapse of the US stock market which is now known as Nasdaq. 1. The economy of the US recovered from this setback only to suffer from a similar setback of a lesser magnitude which is called recession. 2. Overvaluation in real estate is perhaps the biggest cause of the current economic crisis, it is better known as the subprime crisis in the US. 3. Factors like bad income tax practices have added insult to injury, bad mortgage lending also contributed heavily to this current economic crisis. III. Prevention is better than cure. A. The situation could have been prevented 1. The FED should have taken responsibility 2. Lending should have been checked B. The Bailout package worked to a certain extent 1. The current situation remains precarious. 2. Good things to come in the future for the US economy. Conclusion: The stock market slaughter has weakened almost all the major economies of the world and this is because of the housing crisis in the US. High oil prices have affected all the people across the globe and especially the importers, inflation has been constantly on the rise because of the high oil prices and the same has affected the global economy. The confidence of the investors has taken a real beating because of the financial crisis; people have stopped investing the way they used to before the financial crisis.
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(The Housing Financial Crisis Speech or Presentation)
“The Housing Financial Crisis Speech or Presentation”, n.d. https://studentshare.org/english/1455400-the-housing-financial-crisis.
According to this discussion the banks and the financial institutions suffered from the crisis. The governments of almost all the nations had to come up with packages that are required to move out from such a situation. The financial crisis will shed its impacts around the globe due to globalization.
The author states that the boom in the housing market started growing as the stock bubble grew up in the last decade of the 20th century. In simple terms, the logic governing the growth of the housing bubble was one such that the wealthy were spending the money they had accumulated from the favorable stock markets.
The effect of the housing crisis has mostly affected the mortgages. These are the people and the organizations who deal with houses. These include selling houses and lending of houses. The housing crisis has resulted from the global financial crisis. It was branded by mortgage delinquencies and foreclosures.
Introduction 3 2) Types of Financial Crisis 3 3) Causes of Financial Crisis 7 4) Prevent Financial Crisis 9 4) Conclusions 10 References 11 1. Introduction Financial crisis is a term used to identify events and situations where an entity such as a bank, financial institutions, and the stock market will suddenly see a devaluation of their assets.
The housing market collapse worsened the already existing financial crisis of 2008 in the United States. The housing bubble emerged from the relaxation of standards of mortgage loans. This allowed the majority of families to buy homes they could not afford with loans that were subsequently defaulted.
One of the most significant causes of the financial crisis disclosed by the author is the market instability. This was related with the poor credit lines which had deteriorated the money supply while limiting the economic growth. Individuals and businesses were unable to pay back their loans which also affected the assets and cash reserves.
The author states that once the bubble burst, it was the poor homeowner left holding the bag, and in the end ended up losing everything. The astonishing part about this is that amidst this crippling crisis, no one truly has an astute understanding of how a simple subprime mortgage flap has caused so much life-changing damage.
.It starts out by pointing out that at the annual meeting of the Inter-American Development Bank (IDB), there was a seeming role reversal as the usually debt-saddled Latin firms were riding high on an economic upswing.
This paper argues that due to ill-advised economic policies, businesses suffered, the housing market failed, and financial institutions were in disarray after the stock market plunged to new lows.
A number of issues were pointed out to be causes of the
The conclusion from this study states that since the year 1970, the wages remained stagnated despite the economic growth of the state. On this note, the governments housing policy was a good idea that came in at the wrong time. The failure of this policy was a result of the people’s financial inability that was a present event before this law came into play.
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