Posts Tagged ‘crisis’

Foreclosure crisis is slowing

Foreclosure crisis is slowing
Even hardest-hit markets are showing declines in number of delinquencies, report shows. — The end of the foreclosure crisis is finally in sight. For the first time in almost three years, the number of homeowners falling behind on their loans is declining.

Read more on The Morning Call

Budget Travel: Worldwide timeshare crisis under way during recession

Budget Travel: Worldwide timeshare crisis under way during recession
In an important recent article, a reporter for USA Today, Roger Yu, has described what he claims is a near-panic by the owners of timeshares at resorts all over the world.

Read more on Cape Cod Times

FSA raises fees as it beefs up supervision after financial crisis

FSA raises fees as it beefs up supervision after financial crisis
City insurance firms have reacted angrily to a hefty increase in the fees they have to pay to the Financial Services Authority (FSA) to be regulated.

Read more on Daily Telegraph

Russia rejects claims of role in Fannie-Freddie crisis

Russia rejects claims of role in Fannie-Freddie crisis
Russia on Monday rejected claims by former U.S. Treasury secretary Hank Paulson that it had attempted to destabilize the U.S.’s largest mortgage finance institutions.

Read more on Russian Information Agency Novosti

Subprime Crisis No Barrier to Affordable Housing

Image taken on 2008-10-19 11:03:57 by woodleywonderworks.

Mortgage Crisis

Image taken on 2008-09-01 12:29:22 by dustjelly.

Mortgage Crisis 2

Image taken on 2008-10-03 15:44:03 by austrini.

Over the Crisis

Image taken on 2008-11-22 16:14:03 by laverrue.

Economic Crisis: Who’s To Blame

In the past two years this country has seen crisis after crisis.   It started with increase of gas prices and ended in economic chaos.   The United States economy, as well as the rest of the world, began to spiral out of control.   In September 2008, Real Estate collapsed as a result of the variable rate mortgage. As early as 1996, and possibly earlier, the variable rate mortgage started to become popular.   People were now able to put one to five percent down on a piece of real estate rather than twenty or twenty-five percent meaning more money left in their pockets.   However, what they did not realize was that while the first eight years of that mortgage would be manageable, the years following would place a crunch on their bank accounts and lives.   Essentially, a variable rate mortgage was set up in such a way that the interest rate would float depending on the economic conditions. So who is to blame for the crisis that this country currently faces?  This confidence led to the economic bubble that burst just a short time ago. The people who got into these mortgages rode the economic upturn and began to think with their wallets rather than their minds.   In this case, the blame should be placed on the individuals who were negligent.   To invest in a piece of real estate or anything for that matter, one should weigh the risks and rewards that come with said investment.   In this case, the perception is that they did not realize the inevitability that led to the bursting of the economic bubble. That burst shattered the confidence of the American consumer as well as the international consumer.   With the significant decline of the stock markets, people began to feel frightened about the way they were spending their dollars and many lost significant retirement savings invested in the market.   Soon after, one could see cars, boats, and other material belongings on the sides of roads and highways for sale.   These things were consumed because of a false sense of financial security brought on by the variable rate mortgage.   In addition, the amount of foreclosures rapidly increased because people were unable to afford their monthly mortgage payments.   The consumer had been defeated by their own consumption. For years the American economy has been based on opportunities, freedom, consumerism, and a “keeping up with the Jones” mentality.   People base their social status on who has the newest car, appliance, television, home stereo system, yacht, and the list continues seemingly forever.   This list now consisted of who had the fanciest home.   People who were unable to afford a $750,000 home on a fixed rate mortgage were now able to ‘afford’ one; thus beginning the rapid but ultimately false merging of social class. People’s propensity for consumption and their materialistic nature enraptured the economy and caused the crisis that currently faces the world.   So what can be done to fix the crisis?  The only thing that can effectively fix the crisis is for people to put aside their fears and concerns and consume.   Consumption is the basis for a successful economy, and without it this country will continue to fluctuate in the wrong direction.

Financial Shock: A 360º Look at the Subprime Mortgage Implosion, and How to Avoid the Next Financial Crisis

• ISBN13: 9780137142903
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.

Product Description”The obvious place to start is the financial crisis and the clearest guide to it that I’ve read is Financial Shock by Mark Zandi. . . it is an impressively lucid guide to the big issues. ” –The New York Times “In Financial Shock, Mr. Zandi provides a concise and lucid account of the economic, political and regulatory forces behind this binge. ” –The Wall Street Journal “Aggressive builders, greedy lenders, optimistic home buyers: Zandi succinctly dissects the mortgag. . . More >>

Financial Shock: A 360º Look at the Subprime Mortgage Implosion, and How to Avoid the Next Financial Crisis