Reflection Paper

1122 Words3 Pages

Before Economics 210, I really had no understanding or a slight background in how the economy works and how it fails. One of the major fails being the housing market crash leading to the 2008 – 09 recession. I had heard a great deal about how it was “bad,” along with how many people lost their jobs, but no one ever really went into depth of why it was bad, and maybe I guess I never had the curiosity or interest to ask until recently. Throughout this class, we’ve spoken about things from the first chapter to the 22nd chapter that all explain a little bit about the financial crisis. Now that it’s the end of class, we’re able to put everything together into one to understand the financial crisis at full, from the opportunity cost in in chapter one, to the aggregate demand curve in chapter 22, everything has been adding up. The reason for the housing market to crash wasn’t solely based on one error of one person or a corporation. Everyone involved in the housing market had a little to large impact on the financial crisis. In my head, I think people saw that the market was doing well and wanted to keep the flow of money ongoing. The rating agencies, I believe, play a very large part as they were putting AAA ratings on subprime mortgage loans. They were knowingly giving these mortgages the best ratings so that …show more content…

With that being said, Congress passed Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank for short). The Dodd-Frank is to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes

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