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With the housing market flooded with this class of housing the properties values of these homes will be pushed even lower and this with interest rates simultaneously at their lowest possible rate. In fact, what has resulted from subprime lending practices is the lenders worst nightmare in that prices are very low, interest rates are very low, and prospective buyers are very low as well.
Bibliography
Isidore, Chris (2008) New Recession Worry: Bank Failures - Recession Watch 2008. 3 March 2008. Online available at http://money.cnn.com/2008/03/03/news/economy/bank_failures/index.htm?ref=patrick.net
Goldman, David (2008) Fed Officials: Housing Crisis Critical. Eyes on the Fed -CNN News 29 Feb 2008. Online available at http://money.cnn.com/2008/02/29/news/economy/fed_speeches/index.htm?postversion=2008022912
U.S. files New Lawsuit Against...
Online available at http://www.reuters.com/article/bondsNews/idUSN0452271620080304
Weil, Judy (2008) Housing Market Tracker - What will Replace Subprime Lenders. 28 Feb 2008. Seeking Alpha. Online available at http://seekingalpha.com/article/66562-housing-market-tracker-what-will-replace-subprime-lenders
Wei, Lingling and Smith, Randall (2008) Wall Street Gears for Its New Pain. The Wall Street Journal 3 March 2008. Online available at http://online.wsj.com/article/SB120450569895406511.html
Bailey, Nikitra S. (2008) Subprime Mortgage Lending and the Failed Promise of Sustainable Homeownership for People of Color. Financial Apartheid. Online available at http://www.naacp.org/advocacy/theadvocate/rat_sped/july_07/lending/index.htm
Developments in the Sub-Prime Market in the U.S.
Bibliography
Isidore, Chris (2008) New Recession Worry: Bank Failures - Recession Watch 2008. 3 March 2008. Online available at http://money.cnn.com/2008/03/03/news/economy/bank_failures/index.htm?ref=patrick.net
Goldman, David (2008) Fed Officials: Housing Crisis Critical. Eyes on the Fed -CNN News 29 Feb 2008. Online available at http://money.cnn.com/2008/02/29/news/economy/fed_speeches/index.htm?postversion=2008022912
U.S. files New Lawsuit Against Countrywide (2008) Reuters News Service 4 Mar 2008. Online available at http://www.reuters.com/article/bondsNews/idUSN0452271620080304
Weil, Judy (2008) Housing Market Tracker - What will Replace Subprime Lenders. 28 Feb 2008. Seeking Alpha. Online available at http://seekingalpha.com/article/66562-housing-market-tracker-what-will-replace-subprime-lenders
Wei, Lingling and Smith, Randall (2008) Wall Street Gears for Its New Pain. The Wall Street Journal 3 March 2008. Online available at http://online.wsj.com/article/SB120450569895406511.html
Bailey, Nikitra S. (2008) Subprime Mortgage Lending and the Failed Promise of Sustainable Homeownership for People of Color. Financial Apartheid. Online available at http://www.naacp.org/advocacy/theadvocate/rat_sped/july_07/lending/index.htm
Sub-Prime Mortgage Lenders Ethical Legal Issues Ethical and legal issues concerning sub-prime mortgage lenders The essay is aimed at exploring the subprime mortgage lending and related ethical and legal issues. Subprime mortgage has become an influential industry in particular due to the increase in trend to take loans for house purchase in an average American. Ethical Issues involved Legal Issues Ethical and legal issues concerning sub-prime mortgage lenders Subprime Mortgage Industry Legal Issues Ethical Issues CONCLUSION AND SOLVING THE PROBLEM Ethical and
(Der Hovanesian, 2010) Increased Promotion of Discounted mortgages. The way that subprime lending practices, and some call predatory lending practices affect the housing market has yet to be realized on such a large scale, as these tactics have always been carefully controlled by lending institutions, due in large part to their historical long-range view. Subprime lending on the other hand is fundamentally not a long-term view practice; it is a short-term
China for instance, which was more protective and where the government was more involved in the regulation of the financial sector, feels the economic repercussions to a lesser degree (Batson, 2009). 3. Avoid over-inflation of prices The root cause of the sub-prime mortgages was the necessity for people to buy houses at unrealistically high prices. As a future recommendation then, better controls should be instated not only within financial markets, but
U.S. ECONOMIC PERFORMANCES IN THE PAST 5 YEARS U.S Economic Performance in the past 5 years Major indicator of healthy state of an economy is the real Gross Domestic Product (GDP) growth rate. The GDP growth rate reveals the performances of an economy. United States is one of the richest country in the world and "has the largest gross domestic product (GDP) in the world." (Jabir, 2009 P. 3171). The country total
The article that was written by Conley (2011) discusses the impact that collateralized debt obligations (CDO's) would have upon the subprime loans. These were created in 1987, by the Wall Street firm Drexel Burnham. In this product, the investment bankers would take a number of different articles and combine them together as one investment. The various assets that were used included: junk bonds, mortgages and other high yielding investments from
shadow banking system, its role in the subprime mortgage crisis, and failures of regulation within the shadow banking system. The term "shadow banking system" was coined by PIMCO's Paul McCulley in 2007 (Spanos, 2012) and refers to a banking system that includes financial intermediaries that are involved in creating credit across the global financial system, whose functions are not subject to regulatory oversight (Investopedia, 2012). The question has been