Financial crisis of 2007–2010

noted that this intervention in the private sector may have been the “most successful intervention in U.S. economic history” (Boehlert, 2016). Despite backlash from many Republicans, a major intervention—in the form of a $800 billion stimulus—instituted by the Obama administration touched nearly every aspect of American life in a positive manner. It saved a vast number of state and local government jobs, cut taxes on the middle class, championed a faster transition toward clean energy, improved electronic medical record-keeping, and “incentivized accountability in public education” through programs such as "Race to the Top” (Alter, 2016). The 2010 Dodd-Frank bill was far too modest. However, it did sharply increase regulation of Wall Street and decreased the possibility of another economic collapse. It also included the Consumer Financial Protection Bureau, Elizabeth Warren 's proposal to protect consumers from being victimized by predatory lenders. Additionally, government intervention rapidly expanded college loans and hundreds of other investments, actually boosting growth unlike the years during the Great Recession. As the unemployment rate increased, spending on programs like nutrition assistance, Medicaid, and unemployment insurance all automatically went up. This of course made the federal deficit balloon, but that was a good thing. It indicated that the government was increasing its demand, thus preventing the economy from getting worse. Though I am a loyal member…

Some economists begin to worried about the future; will the Chinese market has a sudden decrease or even a hard landing? (Walker, 2015, para.2). Would the U.S. economic system reform in a healthy and correct way? There is no right answer to those questions, which should only be able to answer by time. According to the historical references and the current economic growth trends, it is reasonable for people to worried about both countries’ future. Since these two big markets can easily cause a…

The economy went into a doomed era in 2008. Gigantic banks on Wall Street, which people often referred them as the heart of economy fell. The fraud emerged years later, when the banks were selling the synthetic CDOs. This became a chain reaction that links one another and put the world into deep recession. Too Big to Fail and The Big Short contributed to the ongoing narration of the 2008 financial crisis in a cinematic format, which also journalism, television, advertising and public relations…

Greece failed to make a payment to the International Monetary Fund (organization of 188 countries, working to secure financial stability and international trade). Will Greece be leaving the Euro zone? The Euro zone has been helping Greece for many years financially, but you can only help someone or something for so long. Currently, Greece is under strict rules to get their financial situation back in order. How will the future Greece affect the Euro zone and world? In the article Understanding…

The advantages of Globalization of finance are the reduction of financial risk, improve the allocation of capitals, and reduce borrowing cost. Every business small or large has some form of a financial risk. The reduction of financial risk may require a business to plan for potential risk and existing risk. A company needs to plan ahead for future difficulties seen or unforeseen. Improving the allocation of capitals is one of the most important decisions associated with a company’s success and…

As long as the value of homes continued to rise, people’s financial liabilities (home loans) were offset by the value of their physical assets (homes). Problems arise when house values collapse. Liabilities are no longer balanced by assets… [therefore] financial stability turns out to be dependent in an unsustainable way on growth – in this case growth in the housing market” (Jackson 23). Therefore, the sustainability of the increased debt taken on by Canadians to finance their homes is greatly…

in the history of the United States, was Orange County California, and at the center of this unforeseen catastrophe Robert Citron. Irrefutably, the financial complications that lead to the bankruptcy were the direct result of the mismanagement of public funds by county treasurer, Robert Citron. Furthermore, due to Citron risky investments with the county’s monies, he left the county in a one-and—half billion dollars’ worth of debt. According to the text, as a result, “…Citron was forced to…

the book which juxtaposes the American’s stimulus and British’s austerity policy in housing programs. The US avoid increase rate of mental health problems and infectious disease which correlate with homelessness with effective housing programs, while UK suffers 8% rise of Tuberculosis outbreak after cutting housing budgets. However, the discussions in this final part are limited on resilience at the country level and less exposure on the social factors in the community which is significant for…

The year 2008 was hallmarked by a main financial-crisis particularly in United States. The recession witnessed therefrom was the highest since the 2nd world war. This had consequential effect since this financial crisis in U.S spread to other countries which led to detrimental impact to other countries economic system. A detailed analysis showcase that the financial crisis actually commenced in the year 2006, particularly, when the subprime-market for mortgage in United States commenced to…

In Sanders book he states that academics have identified a number of factors that set the stage of the mortgage market “Financial innovation in the form of asset securitization… Imprudent business and risk management decisions based on the expectation of continued housing price appreciation Faulty assumptions in the model used by credit rating agencies… Gaps and weaknesses in regulatory oversight… Government policies to increase home ownership … lending to higher-risk borrowers… economic…