...implemented TARP. TARP is “the Troubled Asset Relief Program, created to implement programs to stabilize the financial system during the financial crisis of 2008” (“About TARP” 2014). After many banks fell is when the stock market dropped a great deal, a clear sign that financial struggle was soon to follow. “Treasury established several programs under TARP to help stabilize the U.S. financial system, restart economic growth, and prevent avoidable foreclosures” (“About TARP,” 2014). These were considered “emergency programs” and included different programs for housing, the auto industry, the credit market, executive compensation, and bank investments including a huge investment in AIG. Investing in AIG and other major investing companies prevented a major setback in the recession by creating better guarantees on bank transactions, money market funds, and multiple liquidity facilities from the Federal Reserve as well as extra backing for Fannie Mae and Freddie Mac, two of the major financial institutions that play a big role in the United States economy. In addition, all of the programs, especially in the auto industry, saved millions of jobs across the nation (“About TARP,” 2014). Within the housing programs, two separate programs were created to help prevent potential foreclosures as well as create lower...
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...Foreclosure Crisis in Florida and Beyond: Suggested Conflict Resolution Framework For Resolving this Crisis American Dream (or) American Nightmare [pic] [pic] David W. Puckett Email: dpuckett@dvergence.com Skype: david.w.puckett Twitter: davepuckett@twitter.com Phone: 813.727.3583 Introduction Each day there are stories reported in the news about mortgage foreclosures, detailing the single biggest financial crisis to hit the nation that is creating a strangle-hold on our economy and preventing economic recovery. While the entire nation has been stunned, the crisis has disproportionately affected the states of Florida, Nevada, Arizona, California and Georgia; these states were hit with an unprecedented loss of value in residential real estate. According to the leading provider of real estate industry statistics, Realtytrac.com (2011), one in every 611 United States housing units had a foreclosure filing during the month of July 2011 and it appears that the foreclosure processing delays, combined with the smorgasbord of national and state-level foreclosure prevention efforts such as loan modifications, lender-borrower mediations and mortgage payment assistance for the unemployed may be allowing more distressed homeowners to stave off foreclosure.. A CNBC report said that the falloff in foreclosures is not based on a “robust recovery in the housing market but on short-term interventions and delays that will extend the current housing market...
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...United States Economics The Mortgage Industry Introduction In the United States, the mortgage market has successfully and efficiently extended home buyer credit for generations. This business has enabled millions of families to achieve the American dream of owning their own home. The use of subprime mortgages contributed to record numbers of individuals or families with different levels of income, who were previously less than credit worthy now gained greater opportunities to buy a home. Unfortunately, the use of subprime mortgages, however well intentioned, went horribly wrong by practices of poor risk management, lax government oversight, and many assets that are funded by too low equity contributed by owners. The recent financial crisis and the role of mortgage backed securities including allegations of fraudulent activities continue to threaten the company’s financial health through sub-prime related losses. “We believe that these lawsuits further increase the company’s litigation risk and also represent a threat to scathe the company’s financial health to some extent. However, if proved or settled, the investors can breathe some relief” Market Analysis The markets have been in decline for 3 years and there is a very significant challenge that the housing market is presenting to us. We may be on the verge of a double dip recession, the economy is weakening both here and abroad...
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...poverty, low paying jobs, unemployment, mental illness, substance abuse, domestic violence and prisoner re-entry. This report will take a closer look at each cause to determine why it is such an issue. Is homelessness and problem people must accept as inevitable or is there a solution to reduce the number of homeless in our community? Over the past 25 years, several trends have contributed to the rise in homelessness. The first trend is a shortage in affordable rental housing. This includes all forms of rental property whether it is a house or apartment. Rental rates rose with the rate of home values but when the housing market crashed at the end of 2007, the rental rates did not drop. The increased popularity of luxury, resort-style apartments have also aided in a high rent market. The foreclosures that the United States has been experiencing have left many people with an experience of homelessness. The foreclosure rate increased by 32 percent between 2008 and 2009. The current unemployment rate is at 9.2 percent with an estimated 6 million jobs lost since the start of the recession. In 2009, the National Low Income Housing Coalition estimated 7 million households living on low income are at risk of foreclosure and 40 percent of renters are in jeopardy of...
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...Morgan Chase (JPM) agreed to purchase the assets of WM resulting in the largest bank failure in the history of the United States. Due to the failures stated above it brings me to realize why banks are so hesitant to lend money between themselves or to anyone. The crisis began in the real estate market and the subprime lending crisis. As long as we can remember, the values in commercial and residential properties have been exponentially increasing and were not interrupted for nearly a decade. With housing prices increasing it lead to banks lowering lending standards allowing unqualified buyers to take out mortgages while at the same time deregulation blended lines between traditional investment banks and mortgage lenders. However, when housing prices failed to rise and homeowners were not able to keep up with their payments, banks were obligated to recognize write offs and write downs on these assets causing many institutions to become insolvent and having to either raise capital or go bankrupt. The above paragraphs are a brief introduction about what my paper will consist of and will go farther in depth on the subject matter. The contents of my paper will consist...
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...power parity) of 15.08 trillion dollars in 2011.” (www.cia.gov/worldfactbook). The economy of the United States is continually growing, at present it has a “GDP growth rate of 1.8%.”(www.cia.gov/worldfactbook). Though, the economy is still in recovery from the recession, in my opinion, it is doing far better now than it was in 2007 and 2008 because of the recession. “Currently the unemployment rate in the U.S is estimated to be 9%.”(www.cia.gov/worldfactbook). Which is still high when compared to previous years, but that is due to the current economic situation in the country. However, according to the National Bureau of Economic Research website, the recession began in December 2007, and was spurred by “sharp downturns in U.S. stock, housing and labor markets” (http://www.nber.org). As a result of the economic recession in America, there were not only ramifications for the United States economy, but for the people as well, and ultimately the global economy. The recession led to staggering home foreclosures, high rates of unemployment, increases in inflation, decreased consumer confidence, contraction of the economy and much more. Interest rates played a role in the economic recession; for instance, it was due to low interest rates offered by banks, that many people decided to take advantage and buy houses they could not afford, leading them to...
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...AND SOLUTIONS Prepared for Kaplan University GB512 Business Communication Dr. Sue Pettine Prepared by Katherine M. Moore Student September 22, 2011 Contents Executive Summary……………………………………………………… 3 Introduction …………………………………………………………………. 3 Background……………………………………………………………………. 3 Potential Problems and Solutions ………………………………………………. 5 Conclusion and Recommendation ……………………………………………… 7 References ……………………………………………………………………. 7 EXECUTIVE SUMMARY The purpose of this research proposal is to take a look at the economic crisis in the United States. Our country is currently facing one of the worst crises since the Great Depression. Because of this financial crisis many people are facing many anxieties today. In order to work on a solution for this dilemma, we must first admit that we are in a dreadful predicament. This is not the time to disregard the economic setback. We must take a look at our financial situation not only in the United States but globally as well. When a nation is in a crisis there is a tendency to shift the responsibility on just one person. In this research proposal we will look at the economy as a whole. We will tackle the many hard questions that arise when a crisis hit. Some of the hard questions that we will embark upon are the unemployment rate, foreclosures and...
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...The Index The Index | 1 | The Introduction | 2 | Financial Subprime Mortgage Crisis Causes | 3 | Introduction & Background to the Situation of the Egyptian Economy prior to the Global Financial crisis | 10 | Financial Subprime Mortgage Crisis Impacts on Egypt | 13 | The Egyptian Economy & the crisis | 21 | The Conclusion & Solutions | 23 | The References | 27 | The Introduction In the second half of 2008, the world economy went through a serious financial upheaval that sparked off in the United States and spread to Europe and the rest of the world. The negative consequences of this financial crisis had bitten the Egyptian economy in many fields. Egypt’s growth rate witnessed setbacks and may have posted its slowest annual growth in half a decade in 2008–2009 as the global crisis hit revenue from tourism, migrant labor remittances, the Suez Canal, export revenues, and investment. The severity of the crisis and its uncertainties demonstrated the need for urgent action to restore financial stability, lead the economic recovery and secure a sustainable future for the country. This paper therefore critically discusses the current global financial crisis and its impact on Egypt. It presents an overview of the Egyptian economy prior to the crisis, followed by an assessment of the depth and impact of the crisis on sectors of the Egyptian economy. Additionally, the paper highlights the actions taken by the Egyptian government to weather the effects...
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...Unemployment From Wikipedia, the free encyclopedia Jump to: navigation, search For payments paid to unemployed people, see unemployment benefits. Unemployed men outside a soup kitchen in Depression-era Chicago, 1931. Unemployment (or joblessness) occurs when people are without work and actively seeking work.[1] The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. During periods of recession, an economy usually experiences a relatively high unemployment rate.[2] According to International Labour Organization report, more than 197 million people globally are out of work or 6% of the world's workforce were without a job in 2012.[3] There remains considerable theoretical debate regarding the causes, consequences and solutions for unemployment. Classical economics, New classical economics, and the Austrian School of economics argue that market mechanisms are reliable means of resolving unemployment. These theories argue against interventions imposed on the labor market from the outside, such as unionization, bureaucratic work rules, minimum wage laws, taxes, and other regulations that they claim discourage the hiring of workers. Keynesian economics emphasizes the cyclical nature of unemployment and recommends government interventions in the economy that it claims will reduce unemployment during recessions. This theory focuses...
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...unexpected volume of selling on Wall Street, and stock prices plunged. · Black Tuesday - October 29, 1929 - the bottom fell out as millions of investors ordered their brokers to sell, when there were no buyers to be found. · From then on the stock market continued to decline. B. Uneven Distribution of Income · Wages were barely rising compared to the rise in production and corporate profits. · The top 5% richest people received a third of the income. C. Excessive Use of Credit · Brought on by the increased desire for material things. D. Overproduction of Consumer Goods E. Weak Farm Economy · Farmers suffered from high debts and low cost for their products. · Severe weather and long drought. F. Government Policies · Government had high faith in businesses and did little to control them. · High tariffs protected U.S. industries, but severely hurt farmers. G. Global Economic Problems · Resulting in high debts from World War I. · Worldwide depression. II. Effects of the Depression · The U.S. Gross National Product - the value of all goods and the nation’s economy - dropped from $104 billion to $56 billion. · 20% of banks close, wiping out 10 million savings accounts. · People lost their trust in the banks. · 25% of the workforce became unemployed. · The power of the federal government...
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...Where Does America Go from Here? How close to being homeless are you? Any person living in poverty is one mishap away from living out on the streets. Many Americans live everyday with a risk of being homeless or becoming homeless, America has the highest homelessness rates in the world and the biggest problems are not enough jobs opportunities and outsourcing, not enough affordable housing, and mental illness. PROBLEM 1 Homelessness can be directly related to a shortage of jobs in America due to outsourcing and businesses being shut down. Although most of the population has jobs there is a small percentage that don’t and in that percentage lays the homeless percentage. Long-term unemployed individuals rates have not changed since June of...
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...Obama can too. Roosevelt held some strong cards, not all of which Obama enjoys: First, his party commanded large majorities in both houses of Congress throughout his first term. Tuesday's (Nov 2) elections, which delivered the House to the Republicans, have made matters worse for Obama. For the rest of his term, he will find himself in a far different position than the first-term Roosevelt: He will be in opposition to Congress, rather than in charge of it. Second, Roosevelt had good timing. He entered the presidency a full three years into the worst economic disaster the United States had ever faced, by which time the system was so clearly broken that Americans gave him carte blanche. Moreover, the Depression was deep enough when he took office that even by 1936, voters still blamed Herbert Hoover and the Republicans. And crucially, the economy had begun to recover by 1936, if slowly. Obama's timing has been less fortunate. He rode the financial crisis to victory, but he inherited the recession that came with it. Because the recession deepened after his election, he had much greater difficulty pinning the blame on his predecessor than Roosevelt did. And while Obama succeeded in keeping the economy from sliding into a depressive abyss, he got little credit, an injustice that reveals a cruel fact of American politics: It is better to inherit a disaster than to avert one. Brandt may see Obama in FDR's spot but the more accurate comparison would be with...
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...THE FUTURE OF FORECLOSURE LAW IN THE WAKE OF THE GREAT HOUSING CRISIS OF 2007-2014 Clinical Professor of Law Notre Dame Law School Judith Fox 54 WASHBURN L. J. (forthcoming, 2015) Notre Dame Law School Legal Studies Research Paper No. 1504 A complete list of Research Papers in this Series can be found at: http://www.ssrn.com/link/notre-dame-legal-studies.html This paper can be downloaded without charge from the Social Science Research Network electronic library at http://ssrn.com/abstract=2573203 Electronic copy available at: http://ssrn.com/abstract=2573203 The Future of Foreclosure Law in the Wake of the Great Housing Crisis of 2007-2014 Judith Fox* ABSTRACT As 2014 came to an end so, perhaps, did the worst foreclosure crisis in U.S. history. On January 15, 2015, RealityTrac, one of the nation’s leading reporters of housing data, declared the foreclosure crisis had ended. Whether or not their declaration proves true, the aftermath of the crisis will be felt for years to come. During the crisis it is estimated more than five million families lost their homes to foreclosure. Federal, state and local responses to the crisis changed laws and perceptions regarding foreclosure. Despite these changes, we end the crisis much the way we began---with a nationwide foreclosure system mistrusted and disliked by lenders and consumers alike. This paper examines the responses to the crisis in an effort to determine what worked, what did not, and where foreclosure law should...
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...Communities Creating OPPORTUNITY NOW Agenda—October 18th, 2011, 6:30pm to 8:15pm Yellow highlight=needs revision or update Magenta highlight=program team help cue the audience to participate through applause, sign waving, cheers, standing Red means this is a pin question—commitment question we are asking to those present in the audience or our elected officials or civic leaders. Green highlight means we will reinforce this point with a power point slide or graph. 6:00 pm God's Power Band will provide transition music. They will also perform one solo song midway during the program. 6:10 pm Come Together Choirs Start: 1. Congregation/Choir name: Our Lady of Peace Catholic Song selection: "Con Fe" (5min) Number of people in choir: 12-15 2. Congregation/Choir name: St. Peter CME - Song selection: "Let the Glory of the Lord Rise Among Us" (5min) Number of people in choir: 12-15 3. Congregation/Choir name: Ander's Choir Song selection: "STILL NEED SONG TITLE"? (5min) Number of people in choir: 6 6:30pm Logistics & Recognition of I AM exhibit: (Co-Chairs) * REV. JOHNSON: Welcome, as you are finding your seats, please make sure you have signed in, have an Opportunity Now sticker! Restrooms can be found in the main lobby to the right. Make sure to turn your cell phones off. Translation headsets are available. * ORLANDO GALLARD0: Tenemos equipos de traduccion en la mesa de registracion...
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...distinct patterns in consumer and investors behavior that make them peculiarly venerable. First is the tendency of investors to join the bandwagon of speculative investment and of putting their money where others put theirs. Second is an apparent lack of understanding on the relationship between risk and returns. Third is an apparent lack of appreciation for the principles of supply and demand. The principle states that excessive supply will reduce the price and demand for a product to the advantage of the buyer, while a lack of supply will increase demand and price of a product to the advantage of the seller. Causes Economists stress the importance of tracing the root causes of the financial crisis in order to provide a systemic solution to the present financial crisis. Most references present the cause of the financial crisis to be the “subprime mortgages.” However, subprime mortgages by itself did not cause the housing bubble to implode; many other factors contributed to the implosion. Traditionally, a lending institution, such as bank, would grant a loan based on the capability of the borrower to pay and on his/her ability to guarantee the loan with a fixed asset or collateral. The borrower mortgages the fixed asset to the lending entity, who in turn gains the right to “foreclose” a mortgaged asset and to...
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