6 Ways The 2008 Market Crash Affect Us

371 Words1 Page
bulb-icon

Recommended: Cause of housing problem

The market crash dramatically affected the real estate business by increasing the cost of purchasing a home, and thus, monthly payment amounts for borrowers as well as making loans extremely difficult to receive. Throughout the market crash, real estate was affected as one of the hardest; one portion that was dramatically affected, was the price of home owning/renting. In the article,“6 Ways the 2008 Crash Is Still Affecting Us,” Nancy Mann Jackson explains that before the 2008 crisis, potential borrowers obtained mortgages easier, due to less stringent requirements, which led to people borrowing more than they could afford. Now people purchase homes that they can more realistically afford. The 2008 market crash damaged mortgages, this

Show More
Related

  • Similarities Between the Great Depression and the Great Recession

    974 Words  | 2 Pages

    There was a new concept of credit nicknamed "buy now, pay later." Not long after this concept came to be, the stock market crashed. For the decades before the current housing crisis, buying homes and loaning money was a simple, but strict, affair and had two outcomes. Either the borrower could pay back the money owed, or they could not pay the money back. If the borrower could pay the money back, they could keep their house or whatever they took out the loan for.

    Read More

  • Canada Housing Market Essay

    1252 Words  | 3 Pages

    “The housing market will get worse before it gets better” –James Wilson. The collapse of the United States housing market in in 2008 was one of the most devastating moments for the world economy. The United Sates being arguably the most important and powerful nation in the world really brought everyone down with this event. Canada was very lucky, thanks to good planning and proper preventatives to avoid what happened to the United States. There were many precursor events that occurred that showed a distinct path that led to the collapse of the housing market. People were buying house way out of their range because of low interest rates, the banks seemingly easily giving out massive loans and banks betting against the housing market. There were

    Read More

  • Exploring Canada's Immunity to the 2008 Financial Crisis

    1092 Words  | 3 Pages

    5) Why was Canada able to avoid most of the repercussions of the 2008 Financial Crisis? Your answer should delve into the historical development of both systems.

    Read More

  • The Stock Market Crash and The Great Depression in the US

    796 Words  | 2 Pages

    25 billion dollars lost in 1 day, roughly 25% of the nations population was without a job, and the suicide rate skyrocketed. These are just a few factors that turned the Stock Market Crash of 1929 into the Great Depression, one of the longest and worst economic downturns of that time, according to History.com. 16 million shares were lost at the New York Stock Exchange, eliminating thousands of investors on October 29th, 1929. The Stock Market Crash impacted the United States by putting Millions of people out of jobs, and putting America in one of the deepest financial and economical holes of that time. Today, Americans are still worried it could happen again, which is causing some people to not trust banks, or invest in the stock market. If the stock market were to crash today very few Americans would be prepared.

    Read More

  • The Great Recession

    670 Words  | 2 Pages

    It can be argued that the economic hardships of the great recession began when interest rates were lowered by the Federal Reserve. This caused a bubble in the housing market. Housing prices plummeted, home prices plummeted, then thousands of borrowers could no longer afford to pay on their loans (Koba, 2011). The bubble forced banks to give out homes loans with unreasonably high risk rates. The response of the banks caused a decline in the amount of houses purchased and “a crisis involving mortgage loans and the financial securities built on them” (McConnell, 2012 p.479). The effect on the economy was catastrophic and caused a “pandemic” of foreclosures that effected tens of thousands home owners across the U.S. (Scaliger, 2013). The debt burden eventually became unsustainable and the U.S. crisis deepened as the long-term effect on bank loans would affect not only the housing market, but also the job market.

    Read More

  • The 2008 Economic Recession

    1050 Words  | 3 Pages

    Between January 2008 and February 2010, employment fell by 8.8 million, the largest decline in American history. The 2008 Recession, which officially lasted from December 2007 to June 2009, began with the bursting of an 8 trillion dollar housing bubble. Job losses during the recession meant that family incomes dropped, poverty rose, and people all over the country were suffering. Things like this don’t just happen. Policy changes incorporated with the economy are often a major factor. In this case, all roads lead to one major problem: Deregulation. Deregulation originating from the Carter and Regan Administrations, combined with a decrease in consumer spending, and the subprime mortgage bubble all led up to the major recession of 2008.

    Read More

  • The Stock Market Crash

    882 Words  | 2 Pages

    “There were no smiles. There were no tears either. Just the camaraderie of fellow-sufferers. Everybody wanted to tell his neighbor how much he had lost. Nobody wanted to listen. It was too repetitious a tale” (The New York Times, World History Book). The stock market crash was only one of many contributions leading up to the Great Depression. There were many economic and societal conditions that worsened throughout this time. Luckily there have been documentaries on the life that was lived by the people and how they got through it, just like the character in the movie Cinderella Man, Jim Braddock. Millions of Americans and even people across the globe were hit and somewhat effected by this tragic period in history.

    Read More

  • Stock Market Crash: Catalyst to the Great Depression

    821 Words  | 2 Pages

    Stock Market Crash causes The Great Depression The stock market crash, one of the most miserable times in the history of the United States stock market. Well, the stock market has many investors who lost most of their money either from the banks or the stock market. The stock market crash caused the Great Depression by making investors and companies lose the majority of their money. The Great Depression was the worst unprofitable 10 years in history. This worst time period lasted from 1929 to 1939 and it began after the stock market crashed in 1929.

    Read More

  • Great Depression Causes And Effects Essay

    1065 Words  | 3 Pages

    Beginning on Black Tuesday, October 29th, 1929, a total of 14 billion dollars was lost in America’s economy. Near the end of the week the 14 billion turned into a total of 30 billion dollars (The Great Depression Facts). Many events during the Stock Market Crash caused damage to the economy and lifestyle of the country, ending with recuperations from The Depression.

    Read More

  • The Causes Of The 2008 Global Financial Crisis

    886 Words  | 2 Pages

    This essay will examine the causes of the 2008 Global Financial Crisis (GFC) from a Marxist perspective. This paper will specifically examine and critique how Marx’s Theory of Crisis can be applied to understand and interpret the underlying structural causes of the 2008 Global Financial Crisis.

    Read More

  • The American Dream of Home Ownership

    1366 Words  | 3 Pages

    dropped 10.9% causing the home market to suffer. Individuals who have subprime mortgagees to finance these less expensive homes are often times forced into foreclosure due to substantial rate changes. In affect, the economy faces acontinuing negative cycle of subprime delinquencies that result in tighter credit and lower home prices.17 A worsening of the American housing market will negatively affect the consumers confidence while at the same time worsening the American economy.18

    Read More

  • The Cause and Effect of the Subprime Mortgage Crisis

    1310 Words  | 3 Pages

    In late 2005, the housing bubble burst, and housing began to decline in price. People who refinanced, particularly those who financed with variable interest rates, suddenly found their homes were valued at much less. The housing market became flooded with homes for sale, because the homeowners with variable rates and interest only loans could not continue to make their payments. Greenspan: The rise in the number of homes for sale caused further lowering of home values. Keep in mind that the main reason for the mortgage crisis is the high number of defaulted home loans, which triggered foreclosures and sell-offs.

    Read More

  • American Economy Collapse and the Wall Street Crash

    601 Words  | 2 Pages

    American Economy Collapse and the Wall Street Crash The economic boom of the 1920s came to an end in October 1929. The boom got totally out of control by 1929 with the average price of shares increasing by 300%. People would buy on the margin, and then waiting for the prices to go up before selling to make a profit. By the summer of 1929 there were 20 million shareholders in America and the prices continued to rise.

    Read More

  • Ffinacialization and the Housing Market

    638 Words  | 2 Pages

    The housing market crash was a response to a chain of businesses and people who believed that the old laws of banking were no longer important. Banks were no longer required to hold on to mortgages for 30 years which gave them the ability to sell off to other companies, without concern for the mortgage holders. David Harvey, a renowned geographer, warned us of this problem, stating that “labor markets and consumption function more as an outcome of search for financial solutions to the crisis-tendencies of capitalism, rather than the other way around. This would imply that the financial system has achieved a degree of autonomy from real production unprecedented in capitalism’s history, carrying capitalism into an era of equally unprecedented dangers” (Coe, Kelly, and Yeung, 2013)

    Read More

  • The Global Financial Crisis and Its Impact

    1807 Words  | 4 Pages

    The recent Global Financial Crisis (GFC) initially began with the collapse of credits and financial markets, which caused by the sub-prime mortgage crisis in the US in 2007. The sub-prime mortgages were given to high-risk lenders (with bad credit history) who were in danger of defaulting, which eventually caused a global credit crunch, where the banks were unwilling to lend to each other. In October 2008, the collapse of the major financial institutions and the crash of stock markets marked the peak of this global economic slowdown (Euromonitor International, 2008).

    Read More

More about 6 Ways The 2008 Market Crash Affect Us

Open Document