The Global Financial Crisis And The Housing Bubble Essay examples

The Global Financial Crisis And The Housing Bubble Essay examples

Length: 1167 words (3.3 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Reading about the “Global Financial Crisis” and the “housing bubble,” a lot of things come to mind. I remember sitting in school, hearing teachers and adults talking about the financial crisis, but not really knowing what it meant. I remember hearing about other people’s parents being laid off or having to move, but never experiencing it myself. The little bubble of my world was secure, and no one explained to me what was really going on. Until high school.
In high school, I took a financial literacy class. That class opened my eyes to so many things. I remember watching videos about the financial crisis. My teacher told us that he lost thousands of dollars when the stock market crashed, and that he had to rebuild his retirement fund. I remember watching videos about foreclosures, big companies being bailed out by banks and the government, and so much more. Even now, I don’t fully understand the situation. How could such a thing have happened? Bringing the world into crisis and fear, how could so many people have lost jobs, lost their houses, lost their way of living in such a short amount of time?
A lot of folks lost their jobs and were unable to make their mortgage payments, leading to evictions and foreclosures. A system is in place, where a person at risk of being evicted can make a payment plan and could potentially get their house back. Other times, the house is seized and resold to get money or is auctioned off and bought by a third party. Working with the homeless, I am amazed at how many individuals do not actually have homes. Many individuals don’t have jobs to pay for housing, lost jobs and eventually lost their homes, made poor decisions with illegal drugs and couldn’t make payments, or are just getting on their fee...

... middle of paper ...

...e jobs, but I’d like to cut to the chase and talk about the issue. How many more people could be free from foreclosure or actually buy houses if they could make an actual living wage? How many more funds could be swimming around the real estate industry if more individuals were in the middle-low class, or even (dare I say it) the middle class? All these upper class individuals strutting around, buying property is SO wonderful, I’m SO glad they can afford three houses AND a yacht to get money swirling in the real estate industry. What about the mom who had to rent apartments for 10 years because of her foreclosure and the effects it had on her credit? Fix the cancer, and you’ll be swimming in all of the cash flow you want in the real estate industry. Then, no one will have to ask for essays about foreclosure again, because it will be something taught in history books.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Effects of the Bursting of the US Housing Bubble on the European Union

- The bursting of the United States housing bubble during the period of 2006-2007 had triggered the 2008 financial crisis which also spread to the European Union zone. Many major European banks, many of which had significant holdings in the American market, started to crumble, followed by bailout requests, initiating a subsequent crisis that led to the Eurozone crisis. The combination of government debt crisis, a banking crisis, and further worsen by a growth and competitiveness crisis had thrown what could probably the biggest challenge faced by the enlarged Union at the dawn of the twenty-first century....   [tags: global financial crisis 2008]

Better Essays
1354 words (3.9 pages)

Essay about The Global Financial Crisis of 2007

- The 2007 financial crisis, a “once in a century event” a crisis congruent to The Great Depression, has continued to puzzle scholars and economists alike. A crisis of American origin, had the ability to spread rapidly across the world and affect both developed and emerging market economies simultaneously. It is a trite but no less true observation that a lack of a global system of regulation was a main cause of the inception and contagion of a crisis on a global scale. An analysis of the preceding events reveals the global financial crisis as complex by which underlying systemic flaws manifested in the context of an increasingly integrated, global financial market....   [tags: US housing bubble]

Better Essays
1603 words (4.6 pages)

Impact of Financial Crisis on Gulf Area Essay

- ... First, these countries had not invested directly in the United States markets and so when the bubble busted, the GCC countries were not directly affected. Second, most of the economies in the GCC are not fully integrated in the global economy. This implies that most of the shocks that can have devastating effects on the economies of many countries can only have a mild effect to the countries in this region. Third, GCC members are known to be very prudent in the way they manages their resources....   [tags: housing, bubble, debt, loans, prices]

Better Essays
1739 words (5 pages)

The 2008 Housing Crisis: A Brief Overview of Causes Essay examples

- ... In the 1990s, the federal government desired more people to own homes in the United States and lenders were urged to make home loans more attainable for a wider consumer base (Melicher & Norton, 2014, p. 168). Banks were now relaxing credit and income standards for mortgage loans. Lending Practices Lending practices were one of the most significant contributors to the housing bubble and subsequent crisis. Up to this point, banks and other lending institutions were very particular about the creditworthiness of the individuals to whom they would lend money....   [tags: market, housing bubble]

Better Essays
1640 words (4.7 pages)

Blame For The 2000-2006 Housing Bubble Essay

- The issue of whom to blame for the 2000-2006 housing bubble has shifted from an economic to a political discussion. As with many political issues, each party believes they know who’s to blame for issues within the U.S. economy. One theory states that, through things like the Community Readjustment Act and the Affordable Housing mission, the Federal government as a whole should receive the blame. Some economists, however, believe that the U.S. government did its best to make the American Dream of owning a home more accessible to everyone, but banks took advantage of reduced loaning standards and lent out money they knew individuals could never repay. When it comes to the conservative opinio...   [tags: Mortgage, Subprime mortgage crisis]

Better Essays
1065 words (3 pages)

The Role of the Community Reinvestment Act on the 2007 Housing Bubble Collapse

- The Role of the Community Reinvestment Act on the 2007 Housing Bubble Collapse The reality of the worst financial crisis in the last 80 years has led to wide speculation of its causes. While a plethora of theories have been offered, none have been as persistent and as patently false as the assertion that the Community Reinvestment Act of 1977 played a significant role in the housing bubble collapse. Critics of the Community Investment Act (CRA) argue that by pushing banks to meet the credit needs of low-income borrowers, the law forced lending institutions to take on riskier loans that proved to be fiscally irresponsible....   [tags: Economics]

Better Essays
1664 words (4.8 pages)

Essay on Repercussions of the Financial Crisis

- The most important thing on many people’s minds now are probably the financial crisis that is occurring. Due to its enormity, the effects, like the companies firing employees to cut costs, can be felt all around the world. As the repercussions are huge, so we must be well prepared. However, before I go on to the repercussions of the financial crisis, it is essential to know why it occurred. The roots of the crisis can be traced back to the previous years, where the economy was prospering. The Republicans, who were in charge then, overestimated the market’s ability to self-correct....   [tags: financial, economy]

Better Essays
942 words (2.7 pages)

American Recovery and Reinvestment Act 2009 Essay

- American Recovery and Reinvestment Act 2009 The financial crisis of 2008 proved to be the most dangerous since the Great Depression of the 1930’s (The financial crisis, 2009). This crisis left many companies with a shortage of cash flow. Without sufficient cash reserves businesses were unable to cover short-term operations resulting in insolvency. The catalyst, for this crisis, was the 2007 bubble burst of the housing market. This spread quickly to the US financial sector and ultimately affected the global economy....   [tags: financial crisis, housing market]

Better Essays
1405 words (4 pages)

The Financial Crisis Of 2007-2010 Essay

- ... Lending parties extended mortgage loans to individuals who were previously ineligible due to credit score. The creation of NINJA loans made it accessible for borrowers with no income, no job and no assets to obtain a loan. The catalyst for the prompt expansion was caused by the mortgage lender, Fannie Mae and Freddie Mac. Congress allowed and motivated them to “promote affordable housing through expanded purchases of nonprime loans to low-income applicants” (White). The fueling of these insecure mortgages was backed by the cheap Money Policy approved by the Federal Reserve....   [tags: Subprime mortgage crisis, Debt, Mortgage loan]

Better Essays
937 words (2.7 pages)

The Global Financial Crisis Essay

- 1. Introduction 1.1. Background The Financial crisis was triggered in 2006 when US housing market began to crumble as the housing price reached their highest point after years of speculative price increase; many house owners defaulted on their loans, particularly subprime mortgagers (Archarya et al., 2009). Starting in mid-2007, the outburst of US housing bubble in the subprime mortgage leads to the global financial crisis that has been often so called ‘Great Recession’ (Verick and Islam, 2010)....   [tags: subprime mortgages, Great Recession]

Better Essays
3570 words (10.2 pages)