The Financial Market Analysis On Fiscal And Fiscal Sector

1538 WordsFeb 10, 20157 Pages
Introduction Over the past couple years, the United States government has learned from its mistakes and loopholes within the mortgage market. Changes within the Fiscal or regulation of government taxes imposed on citizens, and use of quantitative easing, a macro policy, of buying and selling bonds in open market to inject money in the economy has helped jump start the economy. The cost of the economies revival was at the expense of banks giving out mortgage loans to individuals with poor credit. With the help of deregulation and historical trends of the housing prices, financial analysts felt no harm in giving loans to individuals as long as house prices were rising, the default risk would be zero. Soon the mortgages went underwater, since the price of an individual’s house was lower than the mortgage payment and forced homeowners to default on the loans. Empirical Framework. This research paper focuses on the 2008 Financial Market Crash with an aim of understanding in details the policy-making strategies within Macro and Fiscal sector. Further to that, this paper will explore in details the causes of the crash and the measures employed since then to solve the crash. In this paper, there is an analysis of data that aims at elucidating both macro and fiscal policies. They can be introduced along with the Government regulation policies to the current American mortgage in order to prevent another market crash. This paper considers the selling of bad debts to the world in

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