Before the housing bubble burst, unemployment in Lake County averaged around the same as the rest of Florida (and less than the United States as a whole before 2008) then it jumped above both the state and national averages (that were themselves also increasing) from 2008…
(Inside Job). Then the Dotcom Bubble Burst happened. The Dotcom bubble grew out of the presence of trending investing, a lot of venture capital funding for startups and the failure of dotcoms to turn a profit. Investors poured money into internet startups during the 1990s in the hope that those companies would one day become profitable, and many investors abandoned a cautious approach in fear of not being able to cash in on the growing use of the internet. (Dotcom Bubble Definition). In the year…
In late 2008, I remember my father complaining about losing a significant amount of money in the stocks he had been investing in at the time. I asked him why his stocks were doing so poorly, and he told me in the simplest terms an uninformed fourteen year old could understand. In addition to a variety of other more complex factors I wouldn’t comprehend, a lot of negative news was being reported about the performance of a variety of different companies and the recent spike in unemployment rates…
Entry 1 Westward expansion became crucial in the development of America after the Civil War. A majority of the settlers wanted to move west in an effort to find new rich fertile farmland. The soil the settlers had left behind had been overworked and was now thin, loose and without vital nutrients. Due to this thin soil, their crops suffered. Many settlers simply wanted to buy farmland other than in the east were land was being sold at a premium. Other settlers were immigrants and wanted to…
constructed every year. Furthermore it is said that there are around 64 million empty apartments in China (Tulloch, n.d.). If all these cities stay unoccupied, this can result in a serious real estate problem and eventually lead to a real estate bubble that…
For some people, the foreclosures hit them with a force of a bulldozer rolling them out of their comfortable zones and forcing them back into the land of the rental. But for others, like myself, the foreclosure market was an amazing moment when the stars aligned and every house price dropped to prices that some of us could easily finally afford. Not only were we able to afford a house for the first time possibly in history, we were able to have our pick of the litter as it were. It was a buyers’…
economic booms, and most people living in houses they couldn’t really afford if you looked into their finances. This is what later created negative home equity balances, and forecloses along with many evictions. Before the collapse of the housing bubble more and more people thought at least that they were “living the American…
The meltdown of the real estate and mortgage market had a significant negative impact on the United States economy and countless American families. This was caused by the housing bubble in which house prices peaked to unsustainable values and then burst causing a depreciation in property value. The consumers bought properties at astronomical prices. In order to pay for these properties, the consumers had to take out loans in which a limited financial background check was done to see if the…
as the Great Recession. Lehman Brothers filed for bankruptcy in September of 2008 following the collapse of the housing market boom of the 1990s to mid-2000s. Lehman’s acquisition of subprime mortgage loans led to record profits during the housing bubble; however, these risky investments proved to be the major cause of their failure. (Investopedia, 2017) Subprime mortgage loans are described as mortgages issued to people who could not qualify for a conventional mortgage due to low credit…
On the 15th of September 2008 Lehman Brothers, one of the world’s largest investment banks, filed for bankruptcy. The main driver of which being deregulation. The ever-increasing returns obtainable from financial derivatives led executives, fueled by greed and a perverse incentive structure, to create an intricate securitization castle built on the sub-prime mortgage market. When the rate of return on financial investment is constantly higher than the rate of economic growth, then compound…