Explain How The Us Contributed To The Housing Crisis 2008-2009

After watching the video " Ten Trillion and Counting", I found that the United States borrows money from China, Japan, Europe, and even Saudi Arabia. Borrowing money is something that the government shouldn't rely on for the incoming years because it has the chance of leading to national depression. They continuous borrowing from other countries will leave an immense debt to be payed off. When expenses increase the income yearly then a deficit will run. If those deficits add up then it will turnout as a debt. Although this is a lot money, most of that money is controlled by foreigners. Foreign countries are the highest holders of debt that the U.S. is against. "At the end of April, China alone held $1.1525 trillion of U.S. debt, and all foreign nations combined held over $4.4 trillion, about half of the total public debt. The remainder is split between a wide variety of businesses and individuals around the country and the world (Gofman)." America is low on taxes that and the way balance that problem is to have lend some money.

America’s debt. became 16.2 trillion dollars because we were preparing to go to war. Fewer government jobs were created, and people started not spending money. Imagine all of that money that was used for the military instead of schools, and government paid jobs. We used all of that up all because of the terrorist's attacks. The stock market also did very bad for many years after and people lost a lot of money.

            According to the article Congressional Budget Office in The Budget and Economic Outlook: Fiscal Years 2010 to 2020, the reason for this overwhelming increase in debt is because of three factors : the obvious difference between federal revenues and spending done even before the impact of recession caused this

When World War II ended in 1949, the debt grew at a slow and steady pace for the next 20 years. When the Vietnam War began in the 1960's the debt accelerated sharply. Thanks to the growth of television and news media, growth of the deficit was widely publicized. For the first time, the American people were given access to what was going on with the nation's debt. When the Gulf War began the early 1990's, the national debt reached a trillion dollars for the first time. By the end of the Gulf War, the government decided to make amendments to fix the continuing problem with the deficit. Despite those promises to reduce spending, the debt is currently at it highest point ever.

During the early 2000 's, the United States housing market experienced growth at an unprecedented rate, leading to historical highs in home ownership. This surge in home buying was the result of multiple illusory financial circumstances which reduced the apparent risk of both lending and receiving loans. However, in 2007, when the upward trend in home values could no longer continue and began to reverse itself, homeowners found themselves owing more than the value of their properties, a trend which lent itself to increased defaults and foreclosures, further reducing the value of homes in a vicious, self-perpetuating cycle. The 2008 crash of the near-$7-billion housing industry dragged down the entire U.S. economy, and by extension, the global economy, with it, therefore having a large part in triggering the global recession of 2008-2012.

In 2009 the debt was amounted to about $12 trillion , or 83.4 percent of the country’s GDP (“Budget of the United States Government: Historical Tables Fiscal Year 2011” table 7.1). Since 2003, the debt has been increasing by more than $500 billion annually. The increase in 2009 was $1.9 trillion. According to the Congressional Budgeting Office, this debt will keep increasing at least for the next decade (“The Budget and Economic Outlook : Fiscal Years 2010 to 2020” 21).

The federal budget is known as the notorious economic tank from which money is distributed to various programs. The money used every fiscal year, which begins October 1st and ends September 30th the next year, belongs to the people. The government raises this money through taxes and they spend it on national defense, Medicare, and social security. The federal budget is an exercise in making choices, and those options will certainly affect individuals living in the U.S. These choices cause debt to pile up on the government, who is struggling to make it disappear. The deficit and debt of a government gauges how well it is being run and how well it has been run in the past. According to The Economist the national debt is the total

The federal budget deficit is a much discussed and little understood subject in American politics. The current recession has dramatically decreased tax revenues, driving the United States federal government to increase spending in an attempt to stabilize the economy. As a result the current federal deficit is at over $1.3 trillion dollars. This is approximately $47,754 per U.S. citizen or $137,552 per U. S. taxpayer (U.S. Debt Clock: Real Time, 2012).

The Big Short is a movie that discusses the housing market crash in 2008. As you may know, the banks, the mortgage brokers, and the consumers were all affected by this collapse. On each level of the system, there were things that went wrong and that could have been changed that could have prevented the failure of the housing market.

During the period of 1850 until about 1910 there was an age of Imperialism. Imperialism is the policy of extending a nation’s political and economic dominance or control over another territory or country. Imperialism was important to the political power of many nations for the Eastern and Western. It added wealth, status and increased their military strength. With the strength of their military they are able to maintain their authority all over the world by using their colonies as supply bases and fortifications. Many people in the Western countries believed that their civilization was superior to that of the non-Western peoples. Westerners wanted to bring benefits of their culture to others. They also wanted to teach non-Christians about Christianity. For many Europeans and North Americans, such goals helped to defend imperialism. I am studying imperialism of Great Britain how they took control over China and the United States; how they took control over the Caribbean Islands and Philippines. Prior to their controls, I am studying how their motivations are the similar and differ from one another from their commerce and their government policy.

Throughout most of the country’s history, the United States’ federal government maintained a reasonable level of national debt. For example, the total national debt in 1981 was $998 billion. Since then, however, the government has generated significant budget deficits, and the level of debt has risen to $16.7 trillion in 2013 (Calleo, 39). Budget deficits are caused

In 2007, the U.S. fell into a deep financial recession. One of the main causes of this was the bursting of the housing bubble, which lead to a housing crisis. What is a housing bubble? A housing bubble is defined as “a temporary condition caused by unjustified speculation in the housing market that leads to a rapid increase in real estate prices” (businessdictionary.com 2014). When the bubble bursts, the result is a quick decline in home prices (businessdictionary.com 2014).

The goals that have a high priority in my life are the ones dealing with academics and my strategies for completing these two goals deal with my grades. I would need to receive mainly A’s and very few B’s, as well as taking the required coursework for my major. I would also like to get involved in campus organizations, which I have done by getting involved in both Enactus and Impact. To obtain a position on the executive board in Enactus, I will start out as an active member, move up to a project leader, and then become a board member. Along with academics, I would like to further myself in my career by having an internship and a part-time job. My strategy to find a part time job is to use the resources the career center provides, such as the

Deficit spending is when there is an “excess of government expenditures over the government revenue, creating a shortfall that must be financed through borrowing” (Deficit Spending, 2014). To put this in other terms deficit spending is when the government needs to borrow money in order to pay for different government programs and other items of value. In the past deficit spending has been used when a country was facing a war or they needed to finance a building project. Deficit spending is also used to help pull a country out of a recession. The actions taken by the government during the late 1930s and early 1940s are a prime example of deficit spending. The United States were in the middle of the great depression and consumer spending had fallen drastically due to the number of people that found themselves unemployed and without money. In order to combat this drastic decrease in spending the government took on a number of projects that were meant to increase the overall spending. In order to spend more the government would have to borrow money. Once the country was out of the depression, and consumer spending began to grow, the idea was that the government would be able to pay back the money that they had borrowed. In order to determine if deficit spending is worth the cost a country needs to look at the advantages and disadvantages.

Job and his friends were not aware that his (Job) suffering was inflicted by the devil who sought permission from the Lord to test the faithfulness of Job towards God. After Job suffered the loss of all his children and possession as well as well as being afflicted with sores all over his body, his friends Zophar, Bildad and Eliphaz sought to find meaning as to why all this occurrences. They tried to explain that it was because of sin that God punished man; this being a key argument of the law as written in Deuteronomy 28, wisdom literature in Psalms 37; 92; Proverbs 10:27-30 and Old Testament prophecies and that this could have been the case with Job. On the other hand, Job who had a strong belief on the justice of God accused God of injustice in the sense that He (God) was not adhering to his own rule considering Job believed that he has been faithful to God and has been careful to avoid any kind of evil.