Subprime Research Papers Samples For Students

ABSTRACT

This study explores on the effects of the subprime financial crisis (SFC) on the United States (US) that lasted between 2007 and 2011. Key to understanding the foregoing requires further exploration of the history of subprime lending in the US and its implications to the SFC. A qualitative review of studies under the provided brief literature review provides the methodology for the accomplishment of this study. Findings show that apart from worldwide economic effects, the US greatly suffered from the collapse of its subprime lending market, the decline of financial institutions due to providing too much allowance to granting ...

A Study

The US Subprime crisis and its impact
Introduction
The United States subprime mortgage crisis was a chain of events in the country that led to a financial crisis that was one of the biggest in the world since the era of great depression of the 1928 -1933. It began in the late 2000’s and the effects of it are still being felt in 2012. The subprime mortgage crisis originated due to a number of factors. Those included a boom and the bust in the housing market, the house-owners speculation, improper and high risk mortgage loans and lending/borrowing practices adopted by ...

Introduction

In late 2007, the Dow Jones Industrial Average (DJIA) closed at a record low. Stock markets around the world nose-dived alongside the DJIA. Turbulence in the sub-prime segment of the US housing market, paralysis of the credit markets, excessive lay-offs in organizations, steep decline in investments etc. were all some of the indicators that the world was heading for a massive credit crunch. In the words of Mr. Strauss-Kahn, head of IMF, “Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown” (BBC ...

Introduction

The global financial crisis of 2007-2008 changed business and political outcomes in the United States. The desire by the United States government to ensure that its citizens get affordable housing led to a concerted government and business effort that led to the housing bubble and then bust. The new housing policy had its basis in the idea of American exceptionalism. The term "American Exceptionalism," coined by Alexis de Tocqueville in 1831, has historically referred to the perception that the United States differs qualitatively from other developed nations, because of its unique origins, national creed, political philosophy, and religious institutions. ...

In the Business Ethics course, we encounter philosophies dealing with the appropriate decisions and actions in the face of business circumstances. It is often that business practices solely prioritize raking in money that is possibly disregarding economic impact. To expound on this issue, we would discuss the infamous 2008 Subprime crisis.

The year 2008 made a critical impact to the world of business, especially to the economy of a powerful nation, the United States of America. The economic downfall or in other terms, the financial crisis, that took place in the late 2000s made a lot of people pay for the unfortunate ...

About the paper

The year 2007-08 was a nightmare for the US economy. It was after 80 years of the Great Depression that the United States was facing a financial carnage that was eroding billions, leaving people unemployed and creating a junk in the cash vault of the economy. With back to back failure of the monetary policies of the Federal Reserve and bankruptcy filings by the biggest companies in the country, the eminent economists and members of the Federal Reserve were evaluating the reasons for the economic impotency and discussing the best possible ways to counter the situation. However, amidst all ...

The governments Wall Street bailout was totally justified. There is a law that was put to act in the US commonly referred to as the emergency economic stabilization act of 2008. It is also known as the bailout of the US financial system. The law was enacted as an immediate response to the subprime mortgage crisis which allowed the Secretary of the Treasury in the United States to spend 700 billion dollars in purchasing distressed assets. The cash would be supplied directly to the banks. The main aim of the assets purchase was to inject capital directly to the banks ...

Introduction.

Keynesian theory argues that, in short term, total output is determined by total spending, which mostly consists of investment and consumption, this is the reality for any economy in the world but it doesn’t hold all the time as its subject to alterations caused by microeconomic factors particularly inflation which brings about increased interests rates raising the cost of production and unemployment as firms layoff some workers in order to reduce their cost of production.
During the 2008 crisis which was one of the worst worldwide economic downturn one on the worst hit sector was the housing ...

The global financial crisis adverse effects started in mid-2007 with the credit crunch that deepened in the year 2008. These effects initiated the most severe economic crunch since the Great Depression. It affected the economies of various countries and there geographical reach (Berkman, Gelos, Renhack and Walsh, 2009). Most developed and developing countries most of which that have developing markets encountered high levels of financial strain and slow economic actions. The aim of this research paper is to identify in detail the several ways in which the global financial crisis refigured international relations. The paper explains the role played ...

Throughout history, financial crises and economic recessions have taken place in different parts of the world. After the collapse of the Soviet Union, the United States of America emerged as a force to reckon with in the global market. The emergence of the United States of America as a financial power house is attributed to the liberalization of the markets and the focus on the development of the IT and communication sector. Given the pivotal role of financial epicenters in global financial markets, a crisis in any of the financial epicenters can have devastating effects. In 2008-2009, there was a financial crisis that ...

The 2007-2008 Great Recession was arguably the worst economic crisis after the Great Depression. On September 2008, Lehman Brothers, a major global bank, collapsed (Torres, 2010) and this was the beginning of the crisis. The largest economies in the world continued to suffer from the effects of the financial crisis. The cost of the crisis and the factors that contributed to its manifestation are therefore fundamental in influencing futuristic economic policies in the countries. There are several fundamental factors that led to the 2007-2008 financial crisis: the collapse in prices of mortgage, unstable market and income inequalities.
The 2007-2008 ...

Introduction

Credit is provision of availing the benefit of a tangible or intangible resource without paying immediately and an agreement to pay the same at a future point in time. The payment terms can vary with type and amount of credit. Credit is usually given after ascertaining the creditability and capability of the borrowing party. Credibility is accessed by analysing the behavioural patterns of the borrower and his willingness to pay. Capability, on the other hand, is the capacity or potential of the borrower to be able to pay back the credit
Consumer credit is a popular form of credit and can ...

Abstract

This study used Al Ahli Bank of Kuwait to complete research on the effects of the global economic crisis on the financial performance of conventional banks in Kuwait over the period from 2000-2015. The study results show that the global economic crisis does not have a statistically significant impact on the financial performance of conventional banks in Kuwait. However, the study finds out that some macroeconomic conditions such as equity and bank size are very crucial to traditional banks’ profitability. Increasing the owner's equity was found to decrease the impact of the financial crisis on the conventional banks in ...

2007 Housing Market Bubble
2007 Housing Market Bubble

Introduction

The 2007 housing crash was the worst bubble burst experience that has ever been encountered in the U.S. history, an occurrence that led to financial crisis. It is important to appreciate the fact that different factors led to the housing bubble of 2007, with some of the primary causes being the credit crunch that was caused by the housing bubble. Nathsanson & Zwick (2015) assert that irrational exuberance is among the aspects that led to the development of a ripe environment for the growth of housing bubble hence contributing to the financial ...

Introduction

Housing bubbles have happened in different economies around the globe. The most recent and most publicized was the subprime mortgage crisis in the United States of America. Understanding what a housing bubble entails in very important in determining whether any economy is experiencing a housing bubble. In economic terms, a housing bubble is the unprecedented increase in the prices of houses because of an increase in demand for housing units, speculation on the prices and the belief that the recent trends in demand and price are surefire forecasts of future trends in the housing market.

A housing bubble starts when the demand ...

The crisis of 2008 was the moment of truth for global economics pointing out new possibilities for developed countries to challenge their financial system. This world phenomena was one of the most discussed and controversial during the recent decade. Crisis events, which we observed in American financial system in the second quarter of 2008 affected the majority of countries all over the world and were so drastic and huge while measures of regulators stabilizing the situation so unprecedented, that it allowed to question the effectiveness and resiliency of American financial capitalistic model on global world market (Ershov, 2010). Some ...

Introduction

General Motors, popularly known as GM, is one the largest automobile companies in the world. Founded in 1908 in Flint, Michigan, the company is currently headquartered in Detroit, Michigan. GM occupied the number one position in the automobile industry for 77 consecutive years from 1931 to 2007 ("General Motors Company and Subsidiaries" 2015). Currently, it is the 3rd largest automaker in the world. In 2009, due to operational inefficiencies, slowness in the automobile market in the USA and huge overhead costs, GM filed bankruptcy. However, it restored its operation within a year and came back to profitability within 2 years. ...

Lehman Brothers Bankruptcy

One of the most talked about signs, and for some experts the root cause, of the global recession that plagued in 2008 is the September 2008 bankruptcy petition of known financial giant Lehman Brothers. The known global firm had ended up succumbing to tantamount debt due to the ongoing subprime mortgage transpiring in the period which resulted to severe mortgage complications and foreclosures, especially in the real estate sector The bankruptcy petition was considered a crucial blow to the financial industry given the Dow Jones drop to the all time low and subsequent depreciation prevailed throughout the globe. Many experts ...

ABSTRACT

Homelessness in America is a persistent, complex, and widely-occurring problem that incorporates many economic, social, and psychological dimensions. After years of war and economic decline, the ranks of the homelessness have grown to include families with children (35%); military veterans (23%); children (25%); persons fleeing domestic violence (30%); and the mentally ill (20-25%) (National Student Campaign, 2012). Additionally, the number of homeless young adults, aged 18-to-24, is growing, giving homelessness a new face.In the problem of homelessness, some people perceive a call for greater human compassion, while others demand more effective social policy and more comprehensive public health services. Still others insist ...