Subprime mortgage crisis

Scream season 3 takes its cue from the recent Scream Halloween Special. There is a new psycho killer in town and no one knows who it is. Many speculate that Brandon James is still alive. And the rest are wondering if this third season spells the end of the whole TV show. Is Scream season 3 going to end the slashing madness? Ever since MTV’s release that the show is going to dwindle down from twelve to six episodes, many begin to wonder. Season 3 is set to premiere sometime in 2017. The…

The late 1970s and early 1980s were a time of panic for the accounting profession. Companies were dropping like flies due to fraudulent financial reporting or high inflation and subsequent high interest rates. Because of this, many investors suffered huge losses. Take, for instance, the 1985 collapse of E.S.M. Government Securities, Inc. E.S.M. was a dealer in municipal bonds that used speculative trades to try to recover a $3 million loss, with the loss covered up using customer securities. The…

Coal companies are making big bucks by digging up land in search of coal and in the process they’re barely cleaning up the mess they made. They have the money to do the cleaning up, but they don’t want to pay it. Even regulators are fearing a one billion dollar coal cleanup bill. If it was up to the coal companies they would leave the $1 billion bill for the taxpayers to deal with. Michael Corkery states that, “ The regulators worry that coal companies will use the bankruptcy courts to pay off…

Similar kinds of backdoor derivatives deals resulted in some U.S. cities and counties filing for bankruptcy as well. In 2011, Jefferson County, Alabama entered into the largest municipal bankruptcy at that time with $4 billion in debt. Remember the example with the treasurer of Orange County, CA who relied upon psychic advisors? In that instance, Merrill Lynch representatives roped him in with a derivatives contract. On the other hand, JPMorgan Chase took the ethical high road by refusing to…

The Federal Reserve System, also known as the Federal Reserve, is the central banking system of the United States. Due to a series of financial crises with many banks, especially the one in 1907, the Federal Reserve was created in December 1913. The many crises led to “panics” which caused people to run tot heir banks and withdraw all of their money. During those times when one bank failed, the same would happen to other banks, which caused customers of other banks to withdraw everything, even…

The steady growth of the homeless population in the Washington DC area has been an ongoing issue for many years now with no end in sight. There are many reasons why people become homeless some of the most common reasons are the loss of a love one, mental health issues, loss of a job, drug problems, and gambling debts. The statistics have shown that DC has “65 percent of the regions homeless population and an estimated 1.2 percent of DC’s total population is homeless. The average for the region…

couldn’t afford their mortgages after the crash, and were forced to leave. As a result, the once prosperous neighborhoods were financially unappealing. This led to businesses failing and an increase in crime and poverty in those areas. Semuels (2015) wrote of one specific case where Atlanta’s population of poor people in suburban areas had grown by 159%. This can be seen across the country as the shift from city to suburban poverty continues to this day. Conclusion The economic crisis in 2008…

textbook authors put the word “crisis” in quotes because, it was caused by human greed, and that could have been avoided. 2. The 2008 financial crisis hurt both individuals, business and the country in general. According to Ryan Guina’s article on the great recession; the recession was caused by greed! The United States’ economy is built on credit. Credit is a great tool that promotes growth and jobs, and if abused, the outcome can be catastrophic, as witnessed in the 2008 crisis. - For…

During August 2007 in Germany, a rescue package of €3.5 billion was arranged by the German government for the country’s IKB Deutsche Industriebank AG which had also been afflicted by the US sub-prime market crisis. The whole affair, however, was handled much more cautiously with the public being given no serious indication towards the extent of IKB’s plight. The rationale for this type of secrecy, in the event where wide-spread panic has not yet occurred, was set out in a speech by Eddie George,…

they had no responsibility. (Inside Job) Can you imagine your home inspector saying their inspection was merely opinion and not standing by their work? In 2015 Standard & Poor’s agreed to a settlement of $1.4 Billion dollars for their role in the crisis. (Fortune, 2015) The derivatives market absolutely should have had more regulation. Complex new investments were being developed that were not regulated and frankly regulators might not have understood. It is particularly worrisome that the…