Subprime lending

The video “Mind Over Money” made me think about the way I dictate my financial decisions and if I’m more rational or irrational when it comes to spending. Throughout the video many interesting experiments were shown and spoken about. The experiments were mainly to show if humans use emotions when making decisions about money or rather their more rational about their decisions. The results to most of the tests were astonishing, but they mad perfect sense. In addition to the trials, a ton of…

Financial Crisis and its Impact Outline I. Introduction-Thesis Statement A. To better understand the financial crisis of 2007 and its impact on financial markets and financial institutions one must get to the core to see the causes and conditions that enabled us to happen. To do this an in-depth look must be taken on the following: 1. The cause of problems for financial institutions during the financial crisis itself. 2. The impact the financial crisis had on financial market liquidity. 3. Risk…

Summary: What happened was that people (even those with subprime mortgages) were rated AAA. AAA rating carries little risk because it assumed everyone could pay. Banks gave away loans without even checking people's files, they want interests and rating companies want money as well, so they ensure that people will pay. Few individuals including Dr. Michael Burry realized how volatile this was and decided to buy Credit Default Swaps. Credit Default Swaps are similar to insurance in case people…

Stock Market From Inside Job, a documentary about the lead up to the stock market crash of 2008, Christine Lagarde said “The financial industry is a service industry. It should serve others before it serves itself.” The year 2008 was a huge scare for the common man in the United States. When the housing market crashed, everyone saw their lives change before their eyes and feared for their future. Stocks went down faster than the speed of light and with time of change heading towards the United…

The art works displayed in Strange Currencies, in my opinion proposed a question to the audience not an answer. The artworks voiced strong messages about the catastrophic decade Mexico City endured during the 1990s. Poverty, economic crisis, social upheaval, political corruption, and a rise in violence threatened Mexico City’s culture during this time. In my opinion, the artworks were composed to make a statement about the economic and social issues toward people that did not live there. The…

I agree with your post. As well as you I believe that most of the financial crisis have a lot to do with unethical behavior. Starting from the politians that allow the big financial intuitions to play with the money of the consumer. One of the biggest problem during the 2008 crisis was that the banks were giving loan to basically anyone that had an income, but with a high interest rate causing these people to make impossible for them to keep up with the monthly payments. I always find…

Iran's post-upset difficulties have incorporated the burden of monetary assents and suspension of strategic relations with Iran by the United States because of the prisoner emergency, political help to Iraq and different demonstrations of psychological warfare that the U.S. government and some others have blamed Iran for supporting. Displacement has lost Iran a vast number of business people, experts, professionals, and gifted craftspeople and their capital. For this and several reasons Iran's…

Out of the many events that happen in the history of the United States Of America, these are my top 5 important events in history. These changed the U.S and we will never forget. 5. The Great Depression The Great Depression was an economic downfall in America and many other parts of the world. This was a dark time for America as well as the other countries that this affected. It started in 1929 and lasted for about 10 years. This depression did not end until we entered the war causing a need…

One of the best ways to simplify your mortgage shopping experience is to obtain a prequalification using a mortgage broker. A prequalification is one of the first steps in the mortgage approval process, and it usually involves answering some basic questions about your ability to repay any financing. Prequalification vs. Preapproval However, getting prequalified for a mortgage and receiving a preapproval from a lender are two different steps in the process. A prequalification involves you and…

The 2008 financial crisis is considered to be the worst financial crisis since the Great Depression in 1930. Witnessing the turmoil it followed, sparked an interest within me in the power of money. As I started to mature, I realized that knowledgeable individuals who understand the monetary and banking systems are capable of taking huge financial decisions, whether at the governmental level or a private business. I aspired to be such an individual. Such enthusiasm in me provoked me to have my…