Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Research Paper:
This is a short review of literature that discusses the subprime mortgage crisis which many believe had a significant impact on the financial crisis that began in 2008. The discussion will range from how the crisis started and what the banks knew might happen because of faulty legislation and greedy lenders prior to the crash, to how the crash has impacted families and how some entities have tried to mitigate it with little success.
The financial crisis that began in earnest in 2008 followed many decisions which, in retrospect, were not wise. Legislation can be traced back to the 1960s that began allowing lending companies (banks) and hedge funds to buy large numbers of mortgages and leverage them as if they were real assets (Block-Lieb & Janger, 2011). Other laws followed such as the Community Reinvestment Act first passed in 1977 and amended with much stronger language in 1995 pushed lenders to make loans to people who could not easily afford them (Canner & Passmore, 1995). The result of these laws was that lenders were tasked with promoting low initial cost loans (ARMs) that were often defaulted on by borrowers after the initial low payment period ended (Ruzich & Grant, 2009). Another cause of the financial collapse of 2008/2009 was the fact that speculators bought up large amounts of loans which sent prices skyrocketing. Unfortunately the crisis has affected people unequally, and has helped to foster financial problems worldwide which were further exacerbated by poor socialist practices in other countries. A great deal of research has been conducted since the initial phases of the crisis, but looking at literature from before during and after the crisis is the most accurate method for determining what actually happened and why.
The Community Reinvestment Act (CRA)
Legislators often act in what they believe is the best interests of their constituents and people across the country; presumably, that is what happened when the CRA was
Signed into law by Jimmy Carter in 1977. The law was amended several times over the years, but in 1995 it evolved into a mandate for lenders (Canner & Passmore, 1995). At the time, analysts believed that this amendment was positive, and it is difficult to find research literature that refutes that view. Proponents of the law believed that "lenders overlook[ed] safe and sound lending opportunities in lower-income or predominately minority neighborhoods" (Canner & Passmore, 1995). The law makers responsible for this and further legislation of the kind were interested in ensuring that people, despite where they lived or what ethnicity they were received the same opportunities as every other individual. This was an honorable undertaking that was undermined by predatory lending practices and the irresponsibility of people who would not have been able to afford loans under traditional methods of lending (Miller, 2009). Unfortunately it led to more complications that most likely exacerbated the housing loan crisis.
Fannie and Freddie
In the United States, most institutions are not protected by the government and treated, essentially as government owned entities. The United States government, due to the fact that the U.S. has been set up as a free market economy, does not operate businesses. However, there are businesses, because of the benefit that they will supply to the populace, that have a special relationship with the United States government. These government-sponsored enterprises, or GSEs, are not owned by the government, but they are sponsored in such a way that they essentially become a part of the government in many people's eyes (Peterson, 2005). The most prominent and well-known of these is the United States Post Office which has been operating in this fashion since the organization of the U.S.; another, Amtrak, receives special subsidies that artificially allow it to maintain operations. However, two GSEs that provide home loans are Fannie Mae and Freddie Mac (Peterson, 2005).
These companies came under very close scrutiny following the housing crisis because they owned more loans, by far, than any other lender (Miller, 2009). These two companies not only guaranteed and made loans with different banks as their operative partner, they guaranteed a large amount of loans and speculated on funds that carried even greater amounts (Block-Lieb & Janger, 2011). These practices were recognized as early as 2004 when it was discovered that Fannie Mae had misrepresented earnings. According to Peterson (2005),
"an accounting scandal that forced the company to restate its earnings for the past four years, eras[ed] $9 billion in…[continue]
As Geisel (2004) notes: Income-tax deductions are worth the most to high-bracket taxpayers, who need little incentive to save, whereas the lowest-paid third of workers, whose tax burden consists primarily of the Social Security payroll tax (and who have no income-tax liability), receive no subsidy at all. Federal tax subsidies for retirement saving exceed $120 billion a year, but two thirds of that money benefits the most affluent 20% of
Pedagogic Model to the Teaching of Technology to Special Education Students Almost thirty years ago, the American federal government passed an act mandating the availability of a free and appropriate public education for all handicapped children. In 1990, this act was updated and reformed as the Individuals with Disabilities Education Act, which itself was reformed in 1997. At each step, the goal was to make education more equitable and more
representative system of government has motivated a vital chain of discussions in the literature about police workers administration and representation of women and racial minorities. The serious questions in this study are: (a.) Does the under oath police force rationally mirror a cross section of the groups being monitored? And (b.) What aspects are measured in representation of women and minority police officers in law-enforcement agencies? Black and Hispanic
Poor Leadership Effective leadership is hardly a matter of chance or luck. It constitutes some sound competencies and traits which every leader must either possess naturally or acquire during his career. Leaders are expected to have major essential competencies in five areas namely, Analytical, Positional, Personal, Communication and Organizational. Not every leader may possess all these but they are widely desired based on literature review and hence a leader lacking
Furthermore, it is also believed that the evolution of American society is at a point where all forms of discrimination can be done away with. Dworkin therefore appears to advocate a simple acceptance of all affirmative action programs in terms of their original intention; to redress the collectivist wrongs perpetrated against a collective sector of society, by another collective. In this, those belonging to the historically repressive collective should,
death conveniently resolves the problem of the murder of the Soc and is followed within hours as Whissen puts it, "Dally is made into a tragic antihero. He 'fought for Johnny,' and when Johnny dies, Dally, too, must die. And what he dies for is the absence of fairness in the world, for as all teenagers know, life is anything but fair. Again, though, where adults may guffaw at the
Anabolic Steroid and Performance Enhancing Drug Use Among High School Athletes Anabolic steroid use has, at least in the past, been prevalent among major college and, especially, professional sports. Major League Baseball implemented a drug testing regimen very recently after backlash from fans made it an issue that the sport believed it had to listen to. The National Football League has a testing program that has been in place since 1989,
"Unfairness This Is A Short Review Of" (2012, November 16) Retrieved October 21, 2016, from http://www.paperdue.com/essay/unfairness-this-is-a-hort-review-of-107122
"Unfairness This Is A Short Review Of" 16 November 2012. Web.21 October. 2016. <http://www.paperdue.com/essay/unfairness-this-is-a-hort-review-of-107122>
"Unfairness This Is A Short Review Of", 16 November 2012, Accessed.21 October. 2016, http://www.paperdue.com/essay/unfairness-this-is-a-hort-review-of-107122