The Mortgage Crisis
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The Mortgage Crisis
Waldo J Williams III
American Intercontinental University
16 September 2009
During the past few years, the housing market has suffered and put a major strain on the economy. With fellow citizens losing their jobs because businesses are closing, they are now unable to pay their mortgages for the homes that they were once able to afford. With the government trying to step in to help get the economy booming, the question becomes when and how will this help the housing industry? If the economy doesn’t become stronger, the housing industry is going to suffer drastically. With the fall of the U.S. economy it has been proven that if the economy is not strong, the housing industry will start to fail which will cause a domino effect on the rest of the economy to falter.
“The root of the current crisis, as I see it, lies back in the aftermath of the Cold War, when the economic ruin of the Soviet Bloc was exposed with the fall of the Berlin Wall. Following these world-shaking events, market capitalism quietly, but rapidly, displaced much of the discredited central planning that was so prevalent in the Third World” (Greenspan, 2007).The faltering economy has been a work in progress for several years. The only difference is that the fall of the housing industry caused it instead of other industries. “The current credit crisis will come to an end when the overhang of inventories of newly built homes is largely liquidated, and home price deflation comes to an end” (Greenspan, 2007). Economists felt that if the government listened to them years ago they could have taken a step forward and try to keep this crisis from ever happening.
“The continuing crisis in the housing market has had tremendous effects on the rest of the economy, causing a financial meltdown on Wall Street, freezing loans for businesses, and leading to massive layoffs and bouts of unemployment all across the country” (Chan, A., 2009). This has been an ongoing turn of events...
Waldo J Williams III
American Intercontinental University
16 September 2009
During the past few years, the housing market has suffered and put a major strain on the economy. With fellow citizens losing their jobs because businesses are closing, they are now unable to pay their mortgages for the homes that they were once able to afford. With the government trying to step in to help get the economy booming, the question becomes when and how will this help the housing industry? If the economy doesn’t become stronger, the housing industry is going to suffer drastically. With the fall of the U.S. economy it has been proven that if the economy is not strong, the housing industry will start to fail which will cause a domino effect on the rest of the economy to falter.
“The root of the current crisis, as I see it, lies back in the aftermath of the Cold War, when the economic ruin of the Soviet Bloc was exposed with the fall of the Berlin Wall. Following these world-shaking events, market capitalism quietly, but rapidly, displaced much of the discredited central planning that was so prevalent in the Third World” (Greenspan, 2007).The faltering economy has been a work in progress for several years. The only difference is that the fall of the housing industry caused it instead of other industries. “The current credit crisis will come to an end when the overhang of inventories of newly built homes is largely liquidated, and home price deflation comes to an end” (Greenspan, 2007). Economists felt that if the government listened to them years ago they could have taken a step forward and try to keep this crisis from ever happening.
“The continuing crisis in the housing market has had tremendous effects on the rest of the economy, causing a financial meltdown on Wall Street, freezing loans for businesses, and leading to massive layoffs and bouts of unemployment all across the country” (Chan, A., 2009). This has been an ongoing turn of events...