The Financial Crisis Devastated The Real Estate Market

Decent Essays

The housing sector had served as the backbone of the US economic growth and investment opportunity that propagated several US families into middle-class status. The financial crisis devastated the real estate market that left many institutions facing foreclosure and stripping families of the accumulated wealth. Job growth rate was affected by the crisis since businesses faced closure for lack of access to money hence massive downsizing. Slashed spending was experienced in states in education, public assistance programs and the transportation sector to recoup the losses . Families were affected by the shrinking of the public workforces through the cuts in state and local public employees. The significant labor changes in the states affected many American families, and the myriad lessons led to the implementation of changes to reawaken the economy. The economic situation in the US since the market crash was caused by the housing crisis. The calamity showed a significant improvement with the new generation of boomerang buyers getting back into the market.
The lessons learnt from the market crash are innumerable. They discovered the hard way since the government, Federal Reserve, and related financial institutions failed to scrutinize the effects of high-risk loaning . Many people in the United States economies lost their homes, lost their savings, and a good number of jobs got lost as well. Retirement accounts held by social security institutions got drained with the

Get Access
Get Access