The Housing Market Crash of was the worst housing crash in U. The Housing Market Crash of was the cause of the financial crisis.

This nearly caused the U. There are a number of things we can look at to determine how the housing bubble occurred and what happened to cause the bubble to collapse. The housing market experienced modest but steady growth from the period of to When the stock market crashed inthere was a shift in dollars going away from the stock market into housing.

To further fuel the housing bubble there was plenty of cheap money available for new loans in the wake of the economic recession. The federal reserve and banks praised the housing market for helping to create wealth and provide a secured asset that people could borrow money to help the economy grow.

There was a lot of financial innovation at the time which included all sorts of new lending types such as interest adjustable loans, interest only loans and zero down loans.

As people saw housing prices going up, they were stepping over each other to buy to get in on the action. Some were flipping homes in an effort to take advantage of market conditions. With each loan, banks would quickly securitize the loan and pass the risk off to someone else. Ratings agencies put AAA ratings on these loans that made them highly desirable to foreign investors and pension funds. The housing market peaked somewhere in We were beginning to see some of the early signs of trouble when some types of subprime loans started to go into default.

Once the credit markets froze in the summerthings began to deteriorate rapidly. Subprime credit stopped completely and interest rates for credit for other types of borrowing including corporate loans as well as consumer loans rose dramatically.

Freddie Mac announced that they were no longer buying the most risky subprime. Bear Stearns announced a loan of 3.

The Stock Market Crash of |

The stock market hit a new all-high over 14, On July 31, Bear Stearns liquidates two of its mortgage-back security hedge funds. A worldwide credit crunch had begun and there were no subprime loans available. Subprime lender American Home Mortgage files for bankruptcy. This marked the start of the housing market crash.

The Libor rate rises to its highest level since December ofat 6. Bank of 1929 collapse stock market crash caused the great depression acquired Countrywide financial for 4. Countrywide had a total of 1.

Bear Stearns on the verge of bankruptcy signs a merger agreement with J. The treasury announced a takeover of both Fannie Mae and Freddie Mac that had over 5 trillion dollars in mortgages. Lehman Brothers files for bankruptcy.

The Dow drops points closing at 10, Federal regulators seize Washington Mutual and then strike a deal to sell most of to J. This represents the largest bank failure in U.

That same day Citigroup acquires Wachovia. The Dow closes below 10, The fed announced that it will lend around 1. There were over 3 million foreclosures by this year. Even though the financial crisis was resolved by start of the housing market continued to decline throughout There were over 3 million foreclosure filings for By the 4th 1929 collapse stock market crash caused the great depression of the U.

The Unemployment Rate had stabilized towards the end of Greed and only greed caused the crashes. Investing is the attempt to make a financial killing, in other words, bigger profits and less work. Why else would selling equity put options with their head on straignt want to make a profit on the backs of others?

Thousands of years ago it was determined by one nation that debts should be forgiven every 7 years. Lending money with large interest rates was unfair. But GAMBLERS saw the same things as unconcerned individuals see today.

Morality be dammed and me first. Originally the Jews cornered the market on charging interest on loans and their successful business innovation of making loans for profit is what has led to capitalist growth and the lifting of billions from poverty and starvation globally.

Employers get away with it in this country by only hiring part time workers. What the hell do you think the entire banking industry is based on.

These subprime loans were the riskiest fucking things on the market, but they download dj sava andreea money maker rated AAA.

Get off the fucking Communist high road and realize some shit about the world and how it works. Umm sorry, but you know nothing relevant about the financial collapse and should do some research before claiming you know anything about financial theory. The subprime mortgage risk is not what caused the collapse in Normal not subprime mortgages were regulated by law so that your cheating bankers to be fair this was not all bankers, only dishonest ones were not allowed to claim that they are worth anything more than the rate of return which is obviously the truthful and correct rate maximum that an investor would see.

If you have any doubts do a few minutes of research and to find out how much the total amount of ALL the sub-prime mortgages were at the time of the crash and the government bailout.

This is the proof in the pudding. When the government spent money to bail out the banks, they spent literally more than 5 times the total amount of every single sub-prime mortgage in America. As I was working for National City bank at the time, I know this factually to be percent true. Look it up instead believing the political propaganda of rich politicians who would rather that middle class American should have to rent property from them, rather than being able to get mortgages and own property for themselves.

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