These new innovations allowed people to buy new homes

This preview shows page 2 out of 3 pages.

of a person’s life. These new innovations allowed people to buy new homes, but fooled them because they couldn’t really afford these homes. False sense of security, if what they’re buying is not what they can really afford. As soon as something happens to them or lose their job they can’t stay in the house. Swindles people out of money. Capitalism is built on a product that improves the life of people in America, this is a product that destroyed the lives of Americans is this an innovation or a method to steal money from unsuspecting people of the dangers that are involved. Put down 20% to by down a house in old days. Took a long time to buy that house but when you had the house you could afford it. There used to always be equity in the house or piece of real-estate and the equity was never supposed to be taken out. Although the innovations I listed contributed to the crisis, the housing bubble (or subprime crisis) in real-estate was where the majority of the problems came from. Homeownership was steadily increasing from between 1997 to 2005. It was an increase in homeownership from the west, from people under 35, and for Blacks and Latinos. Those groups are primarily where the largest increase was. Many people were being encouraged to buy homes
Image of page 2

You've reached the end of your free preview.

Want to read all 3 pages?

  • Spring '08
  • Yager
  • Writing, Subprime mortgage crisis, global financial crisis

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern