loan. This caused the houses to foreclose and become property of the government. A fore closer
is when you can’t pay your mor
tgage and the government has to step in a reposes the home. Thefamilies still owe money for the loan so they have to sell what they do have and they becomebankrupt. This became a huge problem in late 2008, but this was not the main cause of the GreatRecession.The banking system in the United States is just a big propaganda market on trying to getpeople to bank with them so that they can use that money to invest in: stocks, other businesses,and any other subjects they can make money off of. The banking system has a series of back-upsthat will help the banks and other companies in case the companies need them because they runout of money or get in a slum
. The order of the reserve bubble is: Central banks’ gold reserves,
MO (paper money), traditional banking assets, shadow banking assets, other assets, bail-outmoney.(clearFinanceBlog 2) When banks went under it was because they were giving out tomuch money to private companies or families for flipping houses,
vacations, or car. Theeconomy before the Great Recession was great which could justify the reasoning for all the loansthat were being given out. Banks were becoming very prosperous, and banks would give outmore money than they had in their reserve this would make the banks have to get money fromthe next level in the reserve if they
were to go under.The Great Recession was said to have ended in 2010 but we still feel the effects today.The average income of a family in 2010 was $49,445 in 2007 the average income for a familywas 52,823. (opendemocracy 1) This was a huge decrease for family income for just three yearsto have gone by. The Great Recession was the biggest hit to United States financial system sensepost World War II. The GDP of the United States in the third quarter of 2008 was equal to theGDP of 2006; it
dropped 30 points in 2008. The Great Recession has affected hundreds of
Because of the way that thegovernment is set up houses had to be foreclosed.
I should explain that at thattime it was okay because the market was so well.
Also I need to clarify that thiswould be the start of the great Recession.
Here I should show that beforethe great recession family income was on steadyrise.
I could clarify that 30 points isa lot!