Fraud, Subprime Mortgages, And The Hidden History Of Financial Crisis Essay

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Fraud, Subprime Mortgages, and The Hidden History of Financial Crisis “Hell is empty, and all the devils are here.” -William Shakespeare (The Tempest, Act1, Sn 2) Financial and economic experts still disagree over the specifics of what caused the recession of 2008. The fraudulent activities which resulted from the subprime mortgage crisis were simply the combination of the perfect economic storm of opportunity meeting the ability for mortgage bankers, corrupt politicians, Wall Street investors, and anyone else feeding from the real estate trough to recognize and capitalize on the presented opportunity. Between the winter of 2007 and the summer of 2009, there was a national banking crisis which fed directly into the United States recession and was initiated by a significant disintegration in housing prices directly after the housing bubble collapsed. The collapse of the bubble led to a decrease in investment interests in residential property and to a higher mortgage rate delinquencies, loan defaults, and foreclosures across the country. Also, there was a complete collapse of the value for housing-related securities which led to a recession-level decrease in household spending and the promise of outside business investments. The subprime mortgage crisis which led to the widespread use of fraud concerning
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