Affordable Housing Essay

health of the economy. It seems like there having uncontrolled access to consumer credits can have a major effect on the housing, businesses and firms, and other lending agencies that issues lines of credit. According to the text, “The availability of consumer credit was a major factor in the slowing of the U.S. economy in 2007 and 2008; the credit crisis began when the housing market collapsed and homeowners began to default on mortgage in record numbers” (Farnham, 2014, p.330). This had a major

peak. The general consensus was the primary causes of the current recession the credit crisis arising from the bursting of the housing bubble. Numerous commentators have weighed in the causes of the housing bubble and resulting the credit crisis. Bernanke (2009) emphasized that the inflow of

Rush Extra Credit The Big Short is a movie about the crash of the housing market in 2008. This economic crisis of 2008 is similar, but different, than the economic crisis of the Great Depression in 1929. They were both an economic downfall creating panic in the US economy. The movie was an overview of the life of a quirky doctor, Michael Burry, who analyzed the mortgage practices and exposed the fraud of subprime mortgages that allowed people with shaky credit to borrow money. The movie also highlighted

The 2007 Financial Crisis Eight years later and the United States is still recovering from the Financial Crisis of 2007. When housing prices peaked in the summer of 2006, the downturn of the housing market began. The first indications of the financial crisis were apparent in falling prices of the securities, and by July 2007 the price declines were outrageous. The events of this particular crisis can be divided into four major phases. The first three were much more severe, but the fourth phase

impacted the construction industry. A recession occurs when a county experiences zero or negative economic growth over a period of time. The current recession we are experiencing can be attributed to the many housing foreclosures and excess housing inventory during this period. The housing market crash affected the entire United States economy and caused a negative economic growth. The recession impacted the economy by causing unemployment, low gross domestic product due to low outputs, and increased

The Great Recession of 2007-2009 was one of the most economically disastrous events in American history. The housing market took a significant downturn during this period. People were not cautious when it came to their money and loans. Larger loans were given out to people, even to those with bad credit and low incomes. These large loans caused many homes to go through foreclosure since people were unable to pay off their mortgage debts. These debts were created by banks increasing the interest rates

as fences and buildings. People use real estate for a wide variety of purposes, including retailing, offices, manufacturing, housing, ranching, farming, recreation, worship, and entertainment.” (Answers.com) In order to more specifically focus on a specific area of real estate this discussion will deal with the housing industry of real estate. In this discussion, when housing is analyzed it will be in the realm of rental real estate. Uses of Land Like with any other commodity or resource the

The Role of the Community Reinvestment Act on the 2007 Housing Bubble Collapse The reality of the worst financial crisis in the last 80 years has led to wide speculation of its causes. While a plethora of theories have been offered, none have been as persistent and as patently false as the assertion that the Community Reinvestment Act of 1977 played a significant role in the housing bubble collapse. Critics of the Community Investment Act (CRA) argue that by pushing banks to meet the credit needs

The insolvency seen in the Housing Market manifested in the large number of stagnant foreclosures caused a dramatic decline in housing prices, which resulted in many homeowners owing more money on their houses than they are worth. Market-level insolvency is caused by capital flight in a specific market in response to a scare during a decrease in solvency. During the scope of this recession, the initial, progressive decrease in solvency was caused by a negative Net Capital Outflow in conjunction

foreclosures, all of which converged into a “perfect storm” of a severe magnitude. The end result was not only the exacerbation of the already looming housing crisis, but the overall bleak outlook on America’s financial system. The integrity of the financial system was put into question along with the future of America’s economy, including its once thriving housing market. In my opinion, I think that like all crises that our great nation has faced, this too shall pass. The question is how quickly will it