The housing market, devastating of the twentieth century, which is called a housing bubble is a metaphor. The housing market is much more than a “bubble.” Many economists and financial analysis blame Congress for pushing lenders to approve loans for people who could not buy homes in the current market, which start occurring in the early 2000s. The collapse of the housing market was not in the hands of a single entity, but by greed. The Government, such as Freddie Mac, Fannie Mae, banks, and other institution for financial gain. Many home buyers lot everything due to the crafty housing market, and the greed of the government and the financial markets.
The housing market created several types of loans which, made it easier to obtain …show more content…
The fair price was set between a willing buyer and the seller, and their ability to pay. The new way of purchasing home created a glitch in the security, and safety of of both parties. Sheree R. Curry, at The Washington Post wrote an article about some of the contributing factors which enable buyers to obtain loans they did not qualify for, as well as qualifying for the new loans that were created to ensure the approval of the loan. Sheree R. Curry said, “Subprime loans were only part of what led to the housing market crash. Here are several contributing factors and the changes they spurred in the mortgage industry; such as, low-documentation loans, adjustable-rate mortgages, equity line of credit, and more money down needed”(Washington Post). And on August 9, 2004 The Nation Daily, reported that, “The housing enthusiasts, led by Alan Greenspan, insist that the run-up is not a bubble, but rather reflects fundamental factors in the demand for housing. Instead of warning prospective homebuyers of the risk of buying housing in a bubble-inflated market, Greenspan gave Congressional testimony in the summer of 2002 arguing that there is no such bubble”(The Nation …show more content…
The domino effect of the housing market, along with an increase in property tax crippled home buyer's income. The housing market has yet to recover, Banks and financial entities have closed their door to doing business, due to the enormous amount of money lost, and the lack of credit due to the housing market collapsing. Dean Baker, a economist wrote, “In Washington policy circles, money and influence can be used to make even the most simple and obvious things complicated and confused. This is certainly the case with the housing bubble and its aftermath. Four years into the housing bubble downturn, much of the country remains hopelessly confused about what happened, why it happened and who is to blame.” Economist suggest that the debt and the devastating losses of homes and may require more than a bailout to recover from the housing market crash. Roubini’s opinion, “is to realize that the problem is deeper than the housing crisis. Reckless people have deluded themselves that this was a subprime crisis Housing market: shoddy underwriting, securitization, negligence on the part of the credit-rating agencies and lax government oversight. “We have a subprime financial system,” he said, “not a subprime mortgage market.” Unfortunately, until the job market recovers, the housing market forecast will continue plummeting, low interest rate
The housing market created several types of loans which, made it easier to obtain …show more content…
The fair price was set between a willing buyer and the seller, and their ability to pay. The new way of purchasing home created a glitch in the security, and safety of of both parties. Sheree R. Curry, at The Washington Post wrote an article about some of the contributing factors which enable buyers to obtain loans they did not qualify for, as well as qualifying for the new loans that were created to ensure the approval of the loan. Sheree R. Curry said, “Subprime loans were only part of what led to the housing market crash. Here are several contributing factors and the changes they spurred in the mortgage industry; such as, low-documentation loans, adjustable-rate mortgages, equity line of credit, and more money down needed”(Washington Post). And on August 9, 2004 The Nation Daily, reported that, “The housing enthusiasts, led by Alan Greenspan, insist that the run-up is not a bubble, but rather reflects fundamental factors in the demand for housing. Instead of warning prospective homebuyers of the risk of buying housing in a bubble-inflated market, Greenspan gave Congressional testimony in the summer of 2002 arguing that there is no such bubble”(The Nation …show more content…
The domino effect of the housing market, along with an increase in property tax crippled home buyer's income. The housing market has yet to recover, Banks and financial entities have closed their door to doing business, due to the enormous amount of money lost, and the lack of credit due to the housing market collapsing. Dean Baker, a economist wrote, “In Washington policy circles, money and influence can be used to make even the most simple and obvious things complicated and confused. This is certainly the case with the housing bubble and its aftermath. Four years into the housing bubble downturn, much of the country remains hopelessly confused about what happened, why it happened and who is to blame.” Economist suggest that the debt and the devastating losses of homes and may require more than a bailout to recover from the housing market crash. Roubini’s opinion, “is to realize that the problem is deeper than the housing crisis. Reckless people have deluded themselves that this was a subprime crisis Housing market: shoddy underwriting, securitization, negligence on the part of the credit-rating agencies and lax government oversight. “We have a subprime financial system,” he said, “not a subprime mortgage market.” Unfortunately, until the job market recovers, the housing market forecast will continue plummeting, low interest rate