Subprime lending

Skeletal Outline • Jefferson County, Alabama o Two major reasons for Jefferson County’s $4 billion debt (largest before Detroit’s case) is due to sewer project and corrupt financial dealing. o Revenue are raised from residents who uses the service. o JPMorgan Chase was able to influence Jefferson County to a bond deal that had complicated terms and the ability to interest-rate swap. o With no increase in revenue as the market interest rate went up due to the swapping interest rate deal, so…

New York City has been slowing down on the amount development that has been happening in the housing market. As the prices of sales and renting are very different from when it was five years ago, as the demand and supply of housing in New York City has affect the changes in the price of housing in sales and renting. The housing market have been slowing down but the market also shows slight increase in prices and slower sales growth. As the number of foreign buyers have decreased, the number of…

The Republican Party is once again trying to push for a law, making transgenders use the bathroom of their birth gender. Previous laws that have tried to discriminate against transgenders using bathrooms of their birth gender have backfired. Transgender laws are unnecessary and hurtful for Texas because it’s impossible to enforce, will hurt the Texas economy, and does nothing to counteract public safety concerns in bathrooms. One of the biggest problems with the transgender bathroom law once it…

Caterpillar and the Global Financial Crisis Despite being a multinational corporation (MNC) and the global leader in the manufacturing of construction equipment, mining equipment, engines (diesel, natural gas), turbines, and locomotives, Caterpillar (CAT), like other global leaders, was susceptible to adverse effects cause by the global credit crisis of 2009 (CAT, 2016). As such, the company’s exposure to risks associated with conducting business overseas were exacerbated by deficiencies in the…

1. How can you compare "tulip mania" from 17th century Holland to the dot.com debacle of the 20th century from a financial point of view? Tulip mania occurred similarly as did the dot.com debacle because both grow rapidly and then crashed the market. Mr. Earl Thompson noted he believed the market responded to changing financial regulation especially with the government’s future contracts. The problem arouse was investors who were to buy tulips in the future were no longer required to purchase…

From the beginning of the early 2000's some major causes that presume to have the major effects on the great recession was fundamental flaws that created growth and contraction. When the economy goes down , the federal reserve can set interest rates lower creating money cheaper for people to take out loans from banks at anytime in exchange to 20-30 year commitment mortgages. This allow Americans to buy households ,make business investments and others that meant more production and more…

1. Based on the documentary, how was the global financial crisis a threat to the economic system in the US? Banks, hedge funds, insurance, brokerages, companies and mortgage lender are the largest sector of the US economy. This was 3x larger than any other industry in America. If you want a strong economy you must have financial services that are able to lend money, this depended on the strength of the global economy due the invention of Credit Default Swap which was packaged whole segments of…

Kyle Phelps Finance 442-001 Professor Bennett October 26, 2014 United States Housing Bubble In December of 2007, the United States entered a recession that it did not begin to climb out of until June of 2009. The cause of the recession is most commonly attributed to the financial crisis that resulted from the housing bubble, which finally burst in late 2006. There were several causes of the Great Recession such as decreasing mortgage and short-term interest rates, lower standards for mortgage…

My definition of a recession is when the average American struggles, because there are no jobs, and barely any money to survive off of. “The economic meaning of a recession is when the economy declines significantly for at least six months. That means there's a drop in the following five economic indicators: real GDP, income, employment, manufacturing and retail sales.” (Amadeo, 2017) A recession doesn’t usually hit very hard so that it is immediately noticeable. It can start up pretty slowly…

price dropped considerably. The houses that had existing mortgages were no longer worth what the current owners acquired them for. The lending institutions began offering mortgages with low payments at the beginning of the loan’s life making it more attractive to purchase a home right then and there. These financial institutions then proceeded to lower their lending standard to bring more buyers and providing easier access to credit. The new potential buyers did not realize that those promises…