United States housing bubble

understand how capitalism is responsible for the economic crisis, it is first important to understand what the 2008 economic crisis was. In 2008, the housing bubble collapsed. Many lenders of mortgages were selling their mortgages…

The housing market, devastating of the twentieth century, which is called a housing bubble is a metaphor. The housing market is much more than a “bubble.” Many economists and financial analysis blame Congress for pushing lenders to approve loans for people who could not buy homes in the current market, which start occurring in the early 2000s. The collapse of the housing market was not in the hands of a single entity, but by greed. The Government, such as Freddie Mac, Fannie Mae, banks,…

The 2008 Financial Crisis in America was reported to be the worst economic disaster since the Great Depression in 1930’s. Signs of economic failure occurred in 2006, where the housing prices started to fall (Amadeo). The first institution to fail was the Countrywide Financial crop in January 2008. The next victim of this financial crisis was the Wall Street Investment House Bear Sterns during March. However, it was later rescued by JPMorgan Chace, which they dealt to buy it for a bargain price…

In the book “Freakonomics” the authors Levitt and Dubner discuss Real-Estate and how agents benefit more than the client. The real-estate topic provides more convincing evidence that people are only inspired to do things based on incentives. The authors work to prove that realtors are self-motivated people, and are not actually helping people. Real-estate agents are professionals with more information than the client. They know how to manipulate a person to make a decision that will benefit the…

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 whom would not have been able to…

was the bursting of the housing bubble in 2005. The bursting of the housing bubble was primarily triggered by what is commonly referred to as the subprime mortgage crisis. The subprime mortgage crisis came about from many banking and governmental policies that encouraged home ownership, in the manner that banks were providing home owner loans to people with lower credit reliability, as well as an overvaluation of certain subprime mortgages on the theory that the housing prices would continue to…

Spring has sprung, and so has the housing market. In just one month, the seasonally annual adjusted rate of sales of new-single family homes has increased 4 percent. Additionally, sales of homes in the $200,000 to $299,999 ranges increased 5 percent. The weather is finally shifting and more people are buying homes, but they are still struggling with the same issues in determining how to finance their home purchases. For new homebuyers, it can be overwhelming trying to budget for the…

During the Foreclosure Crisis several years ago, my community was hit hard. I never thought I would see homes in my neighborhood being foreclosed. It was unbelievable. I was in middle school and high school when this was going on and heard my parents discussing this many times. I look back and think there were things that could have been done to prevent this from being a nation-wide disaster. I believe that there are things that can be done to minimize the effect of a foreclosure crisis…

As I stared at the blank white page in front of me I had no idea what to write. Frustration bubbled up inside me like steam building up in a tea kettle, and I wanted to scream. I had a research paper due in less than a week for my economics class about the Great Recession, but nothing was coming to me. All I could think of were questions. What did I have to say? What did I really learn during all the hours I spent studying the causes and effects of the Great Recession? How did this even affect…

impact on the United States economy and countless American families. This was caused by the housing bubble in which house prices peaked to unsustainable values and then burst causing a depreciation in property value. The consumers bought properties at astronomical prices. In order to pay for these properties, the consumers had to take out loans in which a limited financial background check was done to see if the individual could keep up with the payments. Due to the extreme cost of housing, the…