What were the reasons many bankers saw potentially bigger profits in the areas of mortgage investments in the early 2000s?
As the bubble burst in the housing market, what specific consequences resulted and what were their affects on America's financial institutions? How did the U.S. government respond and in the end were its responses effective? Why or why not?
Answer: An ideal answer will:
1. Discuss how prices of houses continued to increase while interest rates continued to remain low and how this equated to larger profits for banks.
2. Discuss the dynamic shift in the idea of a mortgage from a primary residence to an investment.
3. Discuss the craze of "flipping" and what made "flipping" seem like easy money.
4. Discuss how the housing bubble finally burst and what were the consequences faced by people, who prior to the burst, enjoyed large profits from "flipping." Also discuss how banks, like people, were in trouble by defaulting on their loans.
5. Discuss the federal government's response to restore the financial health of America; specifically what was TARP and why did TARP receive bipartisan support in Congress as a panacea to correct America's financial woes.
6. Discuss the praise/criticism of TARP by some of America's leading financial minds and government leaders.
7. Discuss why the financial crisis worsened as America faced increasing unemployment.
8. Discuss how the exposure of more corrupt business practices in investment cost the American taxpayer billions of dollars and how the government handling of the crisis led to disillusionment of government leadership by the people and the fear of the United States becoming a second-rate financial powerhouse.
9. Write a concise and effective conclusion.
You might also like to view...
Britain recognized American independence by
A) welcoming President Washington to London. B) surrendering at Yorktown. C) ratifying the Treaty of Paris. D) signing the Declaration of Independence. E) deposing King George III.
What type of music did Bob Dylan's songs represent?
A) religious spirituals B) protest songs C) nursery rhymes D) rock ‘n' roll
The event that threatened to destroy the longstanding balance between the number of free and slave states in the United States Senate was the
a. passage of the Kansas-Nebraska Act. b. potential admission of Oregon as a free state. c. attempt to acquire Cuba as a slave state. d. proposed building of a southern transcontinental railroad. e. discovery of gold in California.
Gestures that indicate another person can speak or that are used to request to speak in a conversation are known as _____
A) delivery gestures B) citing gestures C) seeking gestures D) turn gestures E) chronemics gestures