The Subprime Mortgage Crisis in the U.S Essay

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The argument over who should be at fault for the subprime mortgage crisis and housing market collapse in the United States has been a heated debate. Even though home foreclosure keeps rising, there should be some accountability for the economic meltdown resulting from the subprime mortgage situation. Should we blame banking institutions, mortgage lenders, brokers, and investors for this crisis? Should minorities be blamed for recklessly accepting loans and defaulting on them after realizing they could not meet their obligation? Should we blame the government for their inactions for not protecting victims of predatory lending?
Some will suggest that borrowers, banking institutions, mortgage lenders, brokers and investors, government,
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(Baker, 2008)
But government should force banks to work extremely hard with borrowers who are diligently trying to save their home. The time for action is now as any inaction will only lengthen the crisis. The subprime mortgage crisis is an on-going financial problem and a housing market nightmare for the United States economy. Some believe that a dramatic increase in mortgage delinquencies and foreclosures will caused a significant adverse effect on banking institutions and financial markets. Thus far, the housing market has crumbled due to this mortgage crisis, resulting in elevated record number of foreclosures. For many, the dream of home ownership has evaporated. How can this dream be re-established? Kevin Alexander Gray states “We‘ve got to do more to stem the tide of foreclosures and stabilize communities throughout the country,” (Gray, 2009). What actions should be taken? Mr. Gray points out, that the goal is to take corrective action to prevent a continuous meltdown.
But on the other hand, we need to ask the question, how did the subprime mortgage happen? It is important to understand how the economy has been impacted by this foreclosure crisis. Also, it will be dispensable to look at what has really prompted the housing collapse. The immediate cause or trigger of the crisis was the bursting of the United States housing bubble that peaked between 2005 and 2006, (Almendarez, 2009) This can be
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