The Great Recession Essay

804 Words Jul 13th, 2016 4 Pages
The great recession wouldn 't have happened if we as humans did not have the American dream. The typical American dream meaning our goals such as being a house owners, working a great job and having a family of our own at the end of the day. All though the American dream was introduced to us humans a long time ago in the past, when Bush ran for president he pushed to make owning a home a political topic always discussed to the people in 200-2008. Due to the great recession in 2008 in the US the individuals were the victims and the culprits where the social structures such as the banks, insurance companies, and the stock market. Due to these social structures there are four structural factors that led to the financial collapse. As I will explain in full detail below.
The first structural factor is subprime mortgage lending. The banks started giving out excessive debts unlike in the past. In the past ,banks would be very picky to whom they would lend a loan to for a mortagage.They actually took into consideration if the home owners would actually be able to pay the loan back that they were going to take out. They did so by looking to see if they had any open debts, a good paying job, and if they could realistically make their monthly mortgage payments. This all changed drastically in 2008 when banks were starting to lend loans out for mortgages to people that they knew would not be able to afford the payments let alone the full 30 year payments on the houses. And…

Related Documents