The Mortgage Crisis

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Social Issues


Written by:

Susan D


Date added:

December 4, 2011








No of pages / words:

2 / 397


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9625 times


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The term home ownership has been thrown around, but really implies the borrowing of money tied to the value of real estate. Because of our capital market, the more demand there is for something the more that something is worth. The value of a house seemed to grow overnight for no apparent reason, and lenders were able to use this astronomical growth as a reason for people to borrow much more than they could handle...
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As the value of real estate continued to grow the huge amount of credit seemed to be of no consequence because of the large gains in equity homeowners were receiving as their real estate values skyrocketed further upwards. As soon as they started to drop though, the mortgage market began to sink and the value as well as demand for real estate began to drop...
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