Planet Finance Essay

8266 Words Jul 7th, 2013 34 Pages
In 2006 the worlds total economic output was around $47 trillion
Total value of the stock and bond market was $119 trillion
Derivatives $473 trillion

The world is connected through the stock market with London at it’s center not only geographically but time wise

Globalization has vulnerability to financial shocks and political forces

Big and Painful crisis
West caught up in full blown because of mortgage lending we wanted to export to the rest of the world

Americans there is no place like home we take the universal priveledge to own a home for granted

Before the 1930’s no more than 2/5 of American households were owner occupied; however, it was born out of an American financial crisis. During the Great Depression in
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It was built in order to receive home loans effectively dividing white to black side
AA were seen as uncredit worthy devided by color not credit direct consequence of federal policy

Red lining people in area known for a greater black population were required to pay larger interest rates. The two groups were considered prime and sub-prime. This was the catalyst behind the financial struggle during the civil war

Blacks excluded from new property owning they soon discovered that excluding ethnic minorities was dangerous

July 23, 1967 property in Detroit went up in flames urban racial violence caused 5 days of rioting leaving 43 people dead more than 3000 buildings were looted or burned.

Margaret thatcher was quick to learn 1980s conservatism more and more couples had a home of their own more people than ever had mortgages. Interest rates were relatively low but the countries who surrounded their stuff around these policies suppressed interest rates

Crash in property market causes major financial crisis

March 1984 video showing mile after mile of unbuilt houses on interstate 30 outside of dallas.

Biggest financial scam made fun of idea of investment maybe it is not as safe as it seems

The savings and loan industry was hit by inflation and interest rates in the 1970’s which is a double hit since they cannot raise interest rates

1982 deregulation people of savings and loans could now make lots of money and could use

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