Fannie Mae

Introduction In this essay we will be looking at how the “housing bubble” greatly affected the market during the 2008 crash. The build up from 2002-2006 is a key subject when discussing monetary policy and the housing market. Furthermore, there are many attributing factors that increased the housing bubble during this time frame, including: applying the Taylor rule, monetary policy, housing market sectors, and short-term low interest rates. The Taylor (1993) Rule, which forecasts interest…

he recession of 2007 was a wake-up call to not only American lenders, the government and the financial system, but for thousands of homeowners as well. It was unfortunate for borrowers, many of which lost their homes. However the past is the past, and it’s time for their lives to move forward. Although their dreams of these families have been bruised, there is chance for restorations, and many options that they can take to make homeownership a reality again. 1) Contract for deed or land…

to approve loans for people who could not buy homes in the current market, which start occurring in the early 2000s. The collapse of the housing market was not in the hands of a single entity, but by greed. The Government, such as Freddie Mac, Fannie Mae, banks, and other institution for financial gain. Many home buyers lot everything due to the crafty housing market, and the greed of the government and the financial markets. The housing market created several types of loans which, made it…

Although the United Sates had experienced several depression before, none had been as severe nor as long-lasting before October 24, 1929, “Black Thursday”, a world-wide economic disintegration, “The Great Depression”. At first many economists believed it to be a “mild bump” (2010, Allida Black; June Hopkins), in no case, worse than the recession after World War I, but to their surprise’s number rapidly worsened, and the stock market fell dramatically 12.8% (2010, Allida Black; June Hopkins).By…

After the crash of 1929, there was a need for an act that would limit the use of bank credit for speculation and to direct bank credit into what more fruitful uses, such as industry, commerce, and agriculture. In response to these concerns, the main requirement of the Banking Act of 1933 was to separate commercial banking from investment banking. Basically, commercial banks, which took in deposits and made loans, were no longer allowed to finance or deal in securities , while investment banks,…

According to Paul Krugman, Nobel economist, “America in 2008 was looking like the Bernie Madoff of economies: For many years it was held in respect, even awe, but it turns out to have been a fraud all along”. The 2008 recession that crippled the American financial market was mainly caused by the subprime mortgage crisis. “A mortgage is a debt instrument, secured by the collateral of a specified real estate property, which the borrower is obliged to pay back over a set period of time”…

During the year 2007, the housing market in the United States experienced one of the greatest recessions in history. In result, many companies either filled bankruptcy or closed their doors. In the midst of this crisis, the mortgage lending company Quicken Loans developed a corner on the market. As a result, the company’s founder Dan Gilbert became a face of the house market. In a 2014 article entitled “What kind of track records do Quicken Loans and Dan Gilbert have in Detroit? Does anyone…

FDR’S New Deal The New Deal was a group of programs created by President Franklin Roosevelt. The programs were created due to the Great Depression and the economy not being stable. The New Deal focused on what was called the 3 Rs; relief, recovery, and reform. Relief for the poor and people without jobs, recovery to get the economy back to normal, and reform to keep another depression from happening. The New Deal was broke into two groups, the First New Deal and the Second New Deal. The First…

Raghuram Rajan’s book “Fault Lines: How Hidden Fractures Still Threaten the World Economy” provides an in-depth view of the forces that brought about the worst financial and economic crisis in at least half a century and look at what can be done to prevent the next one. Rajan argues that the reasons for the crisis are more complicated than just blaming one single stakeholder (e.g., financial professionals, regulators, government officials), rather, there are serious flaws in the economy. Each…

A . Plan of Investigation Englewood wasn’t always the number one most violent neighborhood ; it became this way due to unemployment rates and gangs evolving throughout chicago . Which leads to the question of “ To what extent were gangs and unemployment rates responsible for the amount of violence in Englewood “ ? Within this historical investigation , research will be done on the amount of and the type of gangs that are associated within Englewood . Everyday someone dies and every second…