The Real Estate Bubble

The Real Estate Bubble - EMBRY RIDDLE AERONAUTICAL...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: EMBRY RIDDLE AERONAUTICAL UNIVERSITY The Real Estate Bubble By: Norman Tejeda 6/27/2011 During the past few years, Americans along with the rest of the world have experienced big financial problems which for many have resulted in the loss of entire life savings, jobs, businesses and in many cases homes. Through this entire ordeal, economist, politicians and consumers alike have wonder what when wrong in the national and international markets; specially the real estate market. Did we have the right policies in place to protect consumers from predatory lending? Did financial institutions engaged in bad or illegal transactions? In general, where did the ball got dropped? We can spend hours debating on how this happened, but I am going to concentrate in explaining how some of the basic concepts in Macroeconomics, like Monetary Policy, Money and Banking, International Trade and Finance played a major role or contributed in some shape or form to the collapsed of the Real Estate bubble. It is no secret that in 2007 the prices for homes throughout the US dropped tremendously when compare to previous years. Many of us where investing and purchasing homes at an alarming rate assuming that such growth will continue into the future without thinking or at least asking ourselves what was causing such changes in such short amounts of time even after just starting to recovered from the 2000 recession after the collapse of the stock markets in the Dotcom era. Historically, the United States has had a stable market place when it came to Real Estate; but around the beginning of the decade, we started to experience unprecedented growth in such market and no one in our government or private industry was able to stopped or at least slowed down such bad trends. Source: Office of Federal Housing Enterprise Oversight...
View Full Document

This note was uploaded on 07/04/2011 for the course ECON 210 taught by Professor Yasin during the Spring '08 term at Embry-Riddle FL/AZ.

Page1 / 10

The Real Estate Bubble - EMBRY RIDDLE AERONAUTICAL...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online