The Financial Crisis Of The United States Essay

1286 Words Nov 18th, 2015 null Page
During the recent housing collapse, the United States endured the most significant financial crisis to ever occur since the Great Depression. Millions of Americans experienced their properties drop in value, their savings shrink, and their jobs eliminated. During this period, failures in consumer protection were widespread and unfair, predatory lending practices were rapidly growing. The weak consumer protection system allowed many lenders to sell financial products and services, such as mortgages, that were overly complicated, leaving many Americans with risky, irresponsible loans that were unaffordable and not fully understood. As the crisis continued to unfold, several of the largest financial institutions in America became at risk of failing, including Lehman who failed outright, only to be rescued at the expense of the American taxpayer (Waters 2013). In her article, Waters (2013) also explains that the consequences of the crisis has resulted in the loss of 9 million jobs, foreclosures that displaced 11 million Americans, home values declining more than 30 percent, and economic costs of more than $13 trillion. Fortunately, the situation has since significantly improved, with the housing market experiencing a steady, upward rebound and the overall economy making a strong recovery. Looking back however, the aftermath of the housing crisis dose reveal many important lessons as well as a bright silver lining. Here, we take a look at this information and also how real estate…

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