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One of the most important factors in causing the 2005-2006 housing bubble was Allen Greenspan's decision to keep the Fed Funds rate at very low rates for a long time after the 2001 dotcom crash. This caused credit to be very loose, and helped people obtain loans and buy houses that they weren't qualified to have. It also caused housing bubbles elsewhere, especially in European countries. Spain and the UK were also hard hit.
Another important factor was the Democrat controlled congress passing laws that allowed and even encouraged people to buy loans. Both sides could see this bubble bursting. The start was decades earlier when Carter forced banks into making 10% of their loans in communities that didn't have people wanting to buy in with good credit. The Community Reinvestment Act forced banks to search for people to buy in these areas. A great idea for the areas, and a very bad idea for banks. Clinton, in 1996 removed restrictions on verifying legal income. This opened the door to even more bad loans in bad areas. To compensate for these bad loans, banks had to see larger interest rates. The previous limits to interest was also removed during the Clinton Presidency. The ONLY President to try to curb this issue was President Bush. He was shot down by the Democratically controlled Congress as being reactionary.
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What was the 2007 crash of the US housing market was an example of?
the U.S housing market was an economic bubble affecting many parts of the united states of America houses peaked in 2006 and declined in 2007 to 2009 and new lows in 2012
Everythong held constant a decline in interest rates will cause spending on housing to?
FAll
The 2007 crash of the US housing market was an example of a(n) .?
The 2007 crash of the US housing market was an example of a financial bubble and subsequent market correction. It was characterized by speculative investments in real estate, leading to inflated housing prices that eventually collapsed when mortgage defaults surged. This crisis triggered a broader financial downturn, impacting global economies and resulting in significant regulatory changes in the financial sector.
How much did a average house cost in 2004?
In 2004, the average cost of a house in the United States was approximately $200,000. This figure varied by region, with prices being significantly higher in urban areas compared to rural regions. The housing market during this time was characterized by steady appreciation, leading up to the housing bubble that peaked in the mid-2000s.
The 2007 crash of the US housing market was an example of a?
The 2007 crash of the US housing market was an example of a financial bubble burst, characterized by unsustainable growth in housing prices fueled by easy credit and risky mortgage practices. As interest rates rose and housing prices began to decline, many homeowners found themselves underwater on their mortgages, leading to widespread foreclosures. This collapse triggered a global financial crisis, highlighting the interconnectedness of financial markets and the risks of speculative investments. Ultimately, it underscored the need for better regulatory oversight in the financial sector.
When did the housing bubble burst?
Greed.
What was Delaware type of housing?
delaware housing is made of bubble gum
How have bank mortgage rates changed since the housing bubble has burst?
Since the housing bubble burst, bank mortgage rates and decreased. This makes it more affordable for people to get a loan and be able to purchase a house.
What is the root word of blubber?
The root word of "blubber" is likely the Old French word "blober," which means "to bubble" or "to foam."
What is the average cost of a house in 2002?
The average cost of a new home in January of 2002 was $187,600. There was a housing bubble in the United States that started in 1998. The bubble peaked in 2006. In 2007, the bubble burst.
Why soap bubble look multicoloured?
The cause is the interference of radiation with different wavelengths in the bubble.
What is the downside of increasing economic interdependence?
Economic interdependence can cause chain reaction such as the situation we are in right now. America's economy crashed due to the housing bubble and the other economys of the world crashed with America's.
Causes of housing problems?
the ROOT cause of housing problem is the OVERPOPULATION..why? because house is in the physiological needs of man and due to this the demands of house is raising and if they cannot afford to put up or there is no vacancy of location though you can afford to buy and established...
What causes transmission fluid to bubble?
IF you have over filled the transmission this will cause it to bubble, this could cause serious damage, drain and refill with the proper ammount.
What is the root cause for the love?
The root cause for LOVE is SECURITY for living.
Is dallas real estate affected with the us housing bubble?
The real estate of every city is affected by the U.S. housing bubble. Dallas hasn't been affected any more or less by this than other cities, so the whole country's in the same boat.
Will car shimmie with air bubble in tire?
It can be a cause.
