Sign In
Not register? Register Now!
You are here: HomeEssayMathematics & Economics
4 pages/≈1100 words
3 Sources
Mathematics & Economics
English (U.S.)
MS Word
Total cost:
$ 17.28

The 2007-2011 Financial Crisis (Essay Sample)


This sample was an essay about the 2007-2011 financial and economic crisis. The essay examined the causes of the crisis including the United States government policy, the structure of the financial market, and establishment of the sub-prime mortgage sector in the U.S. The essay also discussed the consequences of the crisis, including massive foreclosures in the U.S., the collapse of major lending companies such as Lehman Brothers, Bear Stearns, and Countrywide Financial Corp., and the global economic recession.


Professor’s Name
City and State
The 2007-2011 Financial Crisis
From 2007 to 2011, the world economy faced the most devastating financial crisis and economic recession since the Great Depression of 1929. Beginning in mid-2007, the US financial market collapsed, resulting into a country-wide recession that would later spread globally. Within a few months, the investment banking and mortgage industries had collapsed. The largest mortgage lender, commercial banks and many companies also went under. Banks stopped lending to customers, which brought many small and medium level privately-owned businesses down. The crisis resulted in mass layoffs and high unemployment. Share prices throughout the world plunged, and the Dow Jones Industrial Average in the US lost 33.8% in 2008 (Tarr 2012, p.2). By the end of the year (2008), the world was facing a deep economic recession. This paper delves into the main causes of the 2007-2011 global financial crisis, and the consequences it had on the global economy.
Causes of the Crisis
The worldwide economic recession was caused multiple factors, including the structure of the financial market, US government policy, failed government regulation, and the development of a sub-prime mortgage sector in the U.S.
The US government introduced a new lending policy in 1992, to increase home ownership among its citizens. Before the new lending policy, borrowers were required to make a down payment, verification of income and ability to pay the loan. The stringent requirements made mortgages, and therefore home ownership, limited to a few Americans in the prime markets (Taylor & Clarida 2014, p.6). However, the government wanted to reverse this trend and make it possible for many Americans to own a home, to meet the federal Housing and Urban Development Goals. Traditional underwriting 

Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

  • Understanding the Accounting Rate of Return
    Description: The accounting rate of return is calculated by dividing the average accounting profit by the average capital employed. The investment appraisal method puts into consideration the depreciation, net cash flows, and project years. The table above shows the detailed computation of value from the scenario. ...
    15 pages/≈4125 words| 14 Sources | Harvard | Mathematics & Economics | Essay |
  • Qualitative Research: Focus Groups Discussions
    Description: Qualitative research involves the collection and analysis of data using non-numerical methods (for example, videos, texts, and audios) to understand experiences, opinions, or concepts. Qualitative research helps research gather extensive insight about a social problem or generate new and unexplored research ideas....
    3 pages/≈825 words| 4 Sources | Harvard | Mathematics & Economics | Essay |
  • Legal Form of Ownership and Objectives of Apple Inc. and American Cancer Society
    Description: Apple Incorporation is a profit-oriented company cofounded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976. The company owns several technological hardware devices (iPhone, iMac, iPod, iWatch, and iPad among others), softwares (MacOS, Shazam, Siri, and iLife among others), and services (iTunes...
    3 pages/≈825 words| 10 Sources | Harvard | Mathematics & Economics | Essay |
Need a Custom Essay Written?
First time 15% Discount!