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how come people lost their homes and became failure homeless due to the lehman failures
Step by step
Solved in 2 steps
- 1. Explain why the formal credit market fails to meet the financial service needs of the poor.How has the credit crisis May have adversely affected many homeowners and mortgage companies?If you are in financial hardship, explain what it means. If we suppose that financial hardship occurs, explain how and why financial distress would make a company's stock more hazardous.
- Do you agree with this sentiment, that it is more powerful to lose a dollar than to gain a dollar? If so, do you feel this is true for only financial loss or for loss in general?Both the stock market and and unemployment insurance provide volatile payments that depend on factors like the state of the economy or whether you lose your job. But there is the fundamental difference between the returns you receive from the stock market and the ones you receive from the unemployment insurance. Which is the difference? [Hint: think of the timing when you receive the big payment]In order to earn money, how do financial institutions do it? What conditions restrict their ability to make a profit?
- Mary Mari from Ghana needs your help with the following question: What would happen to Ghana or any other country’s standard of living if people lost faith in the safety of the financial institutions? Explain.One example of moral hazard in finance industry is "insurance policies often decreases incentive to take care of possession of its customers". How should people mitigate this problem?If a bank's credit ratings decrease, How does this affect borrowers, lenders, and financial institutions? What are the implications of this downgrade to the health of the financial system?