Impacts of the Housing Crisis - Essay Example

The real property market has experienced a melodramatic turmoil with prices abating in some markets as much as twenty-five to thirty percent. Likewise, with interest yields in the credit markets abating intensely, and stock markets having moderate returns at best, investors are very much engrossed to double-digit yields that tax lien investments may provide. The basics of the tax-lien market, the update the environment for individual investors as well hedge funds were affected. There was also a decreasing effect in the property values.

According to the Securities and Exchange Commission (SEC), the self-regulation of investment banks contributed to this crisis (Randel 5). Another group affected is the traditional house lending companies. This people usually lend out houses to individuals who require the houses for a little time, for example less than one year. The high cost of housing means that this kind of people experienced decreasing demand for their houses thus poor performance in business (UN-Habitat 2). The housing crisis affected the government in that it pressurized the government to change the some housing policies.

One of them was the community reinvestment act. The president carter had originally enacted this policy in 1977. The act had been set in a place to encourage the banks to halt the practice of lending discrimination. This policy affected every individual since it discriminated some people interested in housing who could not afford housing at that time (Alexander and Malpass 5). Lastly, the housing crisis had a direct bearing on other household insiders such as pets, which live in these houses with their owners.

The owners who could not afford to live in large houses shifted to small houses where they. The basics of the tax-lien market, the update the environment for individual investors as well hedge funds were affected. There was also a decreasing effect on the property values. According to the Securities and Exchange Commission (SEC), the self-regulation of investment banks contributed to this crisis.Another group affected is the traditional house lending companies. These people usually lend out houses to individuals who require the houses for a little time, for example, less than one year.

The high cost of housing means that this kind of people experienced decreasing demand for their houses thus poor performance in business. The housing crisis affected the government in that it pressurized the government to change some housing policies. One of them was the community reinvestment act. President Carter had originally enacted this policy in 1977. The act had been set in a place to encourage the banks to halt the practice of lending discrimination. This policy affected every individual since it discriminated some people interested in housing who could not afford to house at that time.

Lastly, the housing crisis had a direct bearing on other household insiders such as pets, which live in these houses with their owners. The owners who could not afford to live in large houses shifted to small houses where they were congested. This means that they had to squeeze themselves to fit in the houses. However, this increased the risk associated with living too close to animals in the house.