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Economic Crisis

In: Historical Events

Submitted By JAMARTIN1984
Words 2390
Pages 10
Root Causes of the 2008-2009 Economic Crisis Pol 201

For this paper I will look into the 2008- 2009 Economic Crisis. There were many factors that contributed to the crisis; I will focus on what may have led to the downturn of the economy and some of the policies implemented by key actors responsible for turning our economy around. I will also look at those who have changed monetary or fiscal policy, and laws governing business since the collapse. I will also give my thoughts on whether these changes will actually be successful on turning things around for the better of our economy.
The economic collapse of 2008 has affected so many people across the nation. With the current unemployment rate at 8.2 percent, (less than .5 percent away from where it was the first year of the Great Depression) many people have lost their homes due to not being able to pay high mortgage costs. Everyone knows at least one family who has been affected by the collapse. Some may say it started because of bad mortgage lending, others say it is because people got in to mortgages that were beyond their means. I believe the crisis has to do with everyone involved in the picture; policymakers, lenders/banks, and consumers.
I was born and raised in San Diego, California. My Mother and Father brought me up with the idea that owning real estate is always a good investment. At age 20, I had a great job making between 60,000- 80,000 dollars annually and the first thing I did when I was able to save up for a down payment was that I purchased a townhouse 13 miles from my hometown. Seeing housing prices continue to rise I knew that if I did not purchase then, I would never be able to. Being a first time buyer, I did not have enough knowledge about lenders, and the different mortgage plans they offered. I ended up going with one of the Adjustable rate mortgages as I was told

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