Predatory lending

1). Many economists consider the crisis of 2007-2009 to be the worst financial crisis since the Great Depression. The housing market crash of 2007 was one of the major significant causes of this financial crisis. Between the period of 1995-1999, the housing market had a slow, but continuous growth. Once the stock market crash in 2000, most shareholders removed their money from stocks and put it into housing. The Federal Reserve endorsed the housing market to help create wealth and to assist in…

In the context of 2017, where the centre of social and political success is the economy of a country, an issue that concerns many economists is the repetition of the 2008 global financial crisis. Due to key issues such as [IMPORTANT FINDINGS] one can conclude that a global recession such as the one of 2008 IS/ISNT likely to happen in the next decade. The 2008 global financial crisis was broadly the result of USA’s banking collapse and the ramifications thereafter. The banking collapse affected…

Kyle Bass is still desperately clinging to his superstar image. Others are starting to realize that the damaging mistakes did more than tarnish his once shinning star. First, it is important to note that Kyle Bass was the founder of Dallas-based fund, Hayman Capital Management. Here is where the story gets interesting. He predicted the the 2008 subprime mortgage crisis. Of course, everyone in the industry imagined that he had some kind of expert insider information or that he just saw the crisis…

Subprime Parable,” Michael Lewis reported that most Americans tend to desire houses they cannot afford. They start blaming rating agencies and mortgage brokers because they find themselves financially underwater. But according to Lewis claim, the lending business didn’t create this desire. The people did. He explains that most people want a house that reflects how well they are. They think that they will control the house but the truth that the house controls every aspect of them. Not only this,…

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…

What Are the Similarities Between Holland's Tulip Mania and the U.S Housing Bubble? By: Gigi Cunniffe 8th Grade Mrs. Curry-Miller 11-30-17…

College Paper 1 Paper 1. College Essay It is high time that corporations and economies as a whole embrace the value that diversity plays in both the work place and our communities. Too long has this been thrown under the table and not given the attention it deserves. According to the Business Journal “Diversity represents a broad spectrum of people and perspectives, and includes acceptance and respect” (businessjournal.com, 2016). As a matter of fact, diversity is the bonding agent that leads…

monetary policies of the period played a large role” (Dokko et al., 2009, p. 3). Therefore, in their view, the three causes that contributed to the housing bubble were low mortgage interest rates, low short-term interest rates, and relaxed mortgage lending standards. One crucial cause of the housing bubble was the widespread belief that home prices would continue to rise. Therefore, allowing borrowers to get low mortgage interest rates. The belief was if “borrowers continued to accumulate…

September 28, 2014 Cook County, Illinois filed suit against Wells Fargo, the nation’s largest mortgage lender, claiming over $300 million in damages. The suit alleged that Wells Fargo’s unethical practices unfairly targeted low-income, minority families and contributed to the housing crisis that left the city with abandoned buildings and million of dollars lost in property taxes. The banking institution was accused of knowingly distributing home loans to black and Hispanic customers, many of…

When Disney announced their numbers for its fourth quarterly earnings in 2015, we saw a massive decline in revenue and subscribers from ESPN, a whopping 3.2 million subscribers in 2015 and a cumulative of 7 million subscribers within the span of two years, reported Nielsen. This major decline resulted from the acts of ‘cord shaving’ and ‘cord cutting, which is respectively when consumers opt in for ‘skinny bundles’ that does not include expensive programming and when they decide to cut their…