Predatory lending

United States, as shown by the rates of homeownership over time (U.S. Census Bureau, updated constantly). This disparity in large part traces its roots to redlining, a government-sanctioned pattern of racially discriminatory mortgage- and other- lending practices that largely segregated people of color into neighborhoods that failed to accrue as much wealth for the residents over generations. As the Greenlining Institute notes in their webpage about economic equity, “Homeownership… is crucial…

ratings wouldn’t be able to qualify for more common conventional mortgages. Subprime borrowers present a higher risk for lenders because of their credit scores and payment history. The subprime mortgage interest change and go far above the prime-lending rate. There…

It goes without saying that African-Americans or other minorities for that matter have gone through all sorts of things. Why them? Why put anyone lower than another person? I guess we will never know. Anyone who has read “A Raisin in the Sun” have felt the heart sinking feeling when the reader finds out that the insurance money get stolen. There must have been a million thoughts running through their head like, “if he would have done what mama said to do with the money with the family in this…

Many people blame the 2008 financial crisis on the financial industry. Is that true? Does the financial industry really responsible for the 2008 financial crisis? I argue no. I believe that it was caused by something larger. I believe that it was by the system of capitalism that America so wholeheartedly embraces. Capitalism allows for people to strive to obtain as much profit as possible, and it also allows for a cycle of economic prosperity and downturn; both if which will be addressed in this…

INSIDE JOB ANALYSIS Submitted by Yashvardhan Singh, 2014PGP432 Inside Job is a commentary on the corruption in the financial system existing in today’s world. Starting from Iceland to USA, the film examines the key financial and political factors behind the financial collapse of 2007-08. The film starts from the political movement behind deregulation of the 1980s, development of trading instruments like derivatives and bundling of loans and mortgages into what was called Collateralized debt…

group of people’ (mbaskool, n.d). Fannie Mae soon began to demand that lending institutions they were dealing with portrayed evidence to prove that they were not engaging in the act of redlining. The new requirements enforced by Fannie Mae subsequently lead to lending institutions lowering their standards on granting loans and charging higher interest rates on loans. This in turn meant that technically Fannie Mae pushed lending institutions into a position of granting subprime loans and…

Boston Tea Party The British East Indian Company went into debt after having corrupt management and becoming involved in a war that cost them a great deal of money. This caused me and another seventeen million pounds to be packed into chests and stored in a warehouse. We all started to lose hope as the days went by and we remained unsold. Then an unlikely hero emerged. His name is Lord North, the prime minister of Britain. He originally put a tax on us that resulted in Dutch tea to be smuggled…

Was there a second Gilded Age? Considering how similar the 1870’s were to the 1980’s, calling the 1980’s a second Gilded Age could be reasonable. The 70’s and the 80’s were both times of excessive spending. Money was spent in different ways, but it sent the economy into major debt in both periods of time. In the 70’s, “the country enjoyed abundant natural resources, a growing supply of labor, an expanding market for manufactured goods, and the availability of capital investment” (Foner, 557).…

Section 3 The financial crisis of 2008 jolted the structure of the economy and affected numerous sectors. These crises occurred because of numerous reasons that stacked up and created a horrendous long-term impact for the overall economy. The financial crisis cost appears to be $5 trillion to $15 trillion. The stock markets fell miserably after this demise, and strategists were unable to control this demise. Several players played their roles in this demise, and players like banks, firms,…

The Great Recession was caused by a number of different factors and the effects were abundant. With so much disagreement on what truly caused the recession, it is apparent that it cannot be pinpointed to one single event or action, but rather a number of factors that set off this devastating economic event. The recession can be blamed on a combination of factors such as deregulations by politicians, AIG, the S.E.C, and many others. The effects of the recession were felt by homeowners, banks, and…