B of a Essay

1835 Words Dec 8th, 2011 8 Pages
Bank of America: Challenges and Expecations
Economic ups and downs are natural phenomena in today’s society. Specifically, American consumers want a good life financed by credit. The American way is, "live today, pay tomorrow". Over the years, America’s obsession for living above their means grew, even if their incomes didn’t, as revealed by the U.S. 2004 Census. A preferred standard of living and feeling of entitlement is what has dominated U.S. consumer spending habits over the last few decades. “This mentality worked so well in the 1960's and 1970's, when there were high-paying jobs, but failed miserably in the 21st century. Inability of the bulk of the U.S. population to change its mentality and live sensibly has resulted in expensive
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This first nationwide banking institution controlled assets valued at over $570 billion, and today is the largest domestic retail bank based on deposits, with 4,800 branches in 22 states. Bank of America serves clients in more than 150 countries and has a relationship with 99 percent of the U.S. Fortune 500 companies and 83 percent of the Fortune Global 500.
Pre-mortgage crisis, Americans could purchase a home and expect the value of that home to appreciate year by year. As we have learned in the past decade, this assumption can no longer be safely made. Before we examine what has caused financial institutions, like Bank of America, to take advantage of American consumers, let us take a look into post WWII government mindset and how the “changes in tax policy and other government programs in the economy (including mortgage interest rates, relative home prices, and household income) and innovations in the mortgage market that may account for the steady rise in homeownership over the past decade”(Carlos Garriga, Gavin, Schlagenhauf). Brought on by post WWII economic stimulation, the American dream of home ownership became even more realistic to those individuals whom the government were anxious to make new homeowners, specifically low income individuals. Homeownership rates declined during the period of the Great Depression. In turn, the government began to adopt policies to promote

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