A major reason that the United States fell into the recession was because banks and private businesses were giving credit to people who could not afford to pay back or had a bad credit to begin with. This was a major problem to all types of busin... ... middle of paper ... ...es are a great way to start out a internship in a Business Administration career because they hire people from the community and people that are not required to earn a high payment as a beginning salary and people who want to learn about the business. At some internship interns do not get paid for the hours they worked because to graduate it’s a requirement and you need them to learn and get a better feeling about the job. As you can see there are many problems that affect the career of my choice. The economy is something that we have to live with and cannot live without it.
The thirties was a bad time for the automotive industry. By now Ford had made a Model-A and had three new colors: tan, purple and black. All of the companies were making more cars than they could sell. Nobody had enough money to buy a car because of all of the banks going under. Millions of people lost whole fortunes.
The foreclosure crisis has occurred for many reasons. Banks offered subprime loans and teaser rates. They approved under-qualified people to borrow more than they could afford to repay. These borrowers, so desperate to own a home, borrowed over their means, counting on a future and now non-existent upswing of the housing market to allow them opportunities to refinance at lower rates after teaser rates expired. As the housing market fell, the banks no longer offered the refinancing that these borrowers counted on, and other economic issues caused many of them to be on even less firm footing then when they got their mortgages.
Today, millions of Americans are suffering lost jobs and cut hours because of the recession. Because of this loss, those people cannot afford the monthly bills the bank sends out for mortgages, therefore making people foreclose on their homes. A home is where people live, cook, sleep and sometimes work. If that is taken away, their lives are taken as well. The foreclosure crisis needs to be solved.
The value of these properties dropped so much that many home owners lost their down payment and could not pay the mortgage balance. These sellers had to pay c... ... middle of paper ... ... properties bought by people with insufficient funds. To solve the problem, a 20% down payment or higher needs to be required for buyers. Those who are able to supply this large initial payment are more likely to have a history of capable money management and pay off their mortgage loans. For interest-only loans and other “exotic” loans such as adjustable rates and 40-year payment plans, a much stricter home-buyer approval process must be set up.
However, this practice left millions of families with large loans and mortgages that they could not afford when the house market fell, thus leading into delinquency and into foreclosure. This is one of the problems that has kept foreclosures in a seemingly endless cycle. Another cyclical problem is the depreciation in the prices of homes. With some houses reaching foreclosure and families just walking out or being evicted, the lack of maintenance of the fore... ... middle of paper ... ...economy. People will make smarter, more informed economic decisions and will have the skills necessary to prevent another economic crisis like our current foreclosure issue.
This plan was established because many Americans didn't have enough money to buy goods and services that were needed or wanted. The installment plan stated that people could buy products on credit and make monthly payments. The one major problem with this idea was that people soon found out that they couldn't afford to make the monthly payment(Drewry and O'connor 559). In 1929 the stock market crashed. Many Americans purchased stocks because they were certain of the economy.
This plan was established because many Americans didn 't have enough money to buy goods and services that were needed or wanted. The installment plan stated that people could buy products on credit and make monthly payments. The one major problem with this idea was that people soon found out that they couldn 't afford to make the monthly payment(Drewry and O 'connor 559). In 1929 the stock market crashed. Many Americans purchased stocks because they were certain of the economy.
This economic turmoil started with home loans and the credit card industry. We have a generation that never understood how to use credit properly and we now have higher claims of bankruptcy than we have ever had as a nation. The recession started because our nation was growing too fast for itself, people were taking out loans for homes they could not afford and the banks were letting them. We also have had a huge credit issue lately; I have even seen it personally with my parents, their interest’s rates have all gone up. Real credit cards, not debit with a credit logo, are a huge responsibility, which many people have proven they cannot handle.
However, homeowners couldn’t afford the explosive debt incurred, which lead to catastrophe domino affect of many people losing their homes (Jarvis, 2009). Entrepreneurs became wealthy off of “flips” (fixing up dilapidated homes to sell at a much higher price), and because most of them had more capital than many homebuyers, the average i... ... middle of paper ... ...es. Receipts of receiving resumes and other proofs should be presented, and for every interview, a sign form will be required. Only these three groups should receive financial aid as the others would eventually need bailout again or loose their home anyway. Before the government and banks bailout homeowners, these institutions should have studies on what groups are going into foreclosure and reasons why these people are at risk or are losing their homes.