Housing Bubble

The hold bubble crash has been a decade colossal problem in the United States. In the beginning the housing market was booming due to the millions of dollars invest handst bankers borrowed from the Federal relief to purchase mortgages from mortgage lenders. This led to the mortgage industry skyrocketing until everyone with comfortably credit who valued a house had one. The investors still wanted to make a profit, but there were no yearlong any customers. Then came the ingenious idea of the sub-prime mortgage, otherwise know as ad middlingable evaluate mortgage. Sub-prime mortgages are home gives minded(p) to people who cannot hand a d cause payment and do not have strong credit. Though the risk of loan default was greater, the loan was still collateralized by the house up for mortgage. With housing prices rising higher and higher, it seemed that having the house to recover the sum up of the loan reduced risk. So, without regard to consequence, the banks offered home loans to persons who could not afford them. From this problem stemmed many problems such as foreclosures, major(ip) companies going belly-up, and the countrys debt increasing with every barter for out.

All of this happened because of the greedy bankers and the Wall Street business men who were looking for the American Dream of riches by merchandising the people there own American dream of owning their own house. The adjustable rate mortgages provided potential home buyers with the opportunity to pay a house with a low interest rate for the first couple of years. After that the rate would go up and their monthly payment would rise almost 100% devising it almost impossible for the home owner to pay. (1) By 2007 foreclosures were just around the corner. The warning signs came on February 27, 2007, a press part with from Freddie Mac, The Federal Home Loan Mortgage Corporation announce that it will no longer buy the most unsafe subprime mortgage-related securities. Several other events occurred including, downgrades of credit ratings of... If you want to get a full essay, order it on our website: Orderessay

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