According to (document d) , mortgages lenders had raised prices on mortgages across America. In result, Americans were are unable to afford the cost of the mortgage and the mortgage lenders cannot get repaid. Therefore the lenders and their consumers were both at fault. The government's response to this situation was to pass the Affordable housing act. This act benefits buyers and lenders because it allows the buyers who are looking for housing even low income families to find housing within their budget.
The company's stock would go down more and more because the company would lose money. Therefore, people would lose money and they would lose their homes and jobs. Also, bank failures happened and innocent people would lose money if they put their money in that bank. A lot of people became homeless because of this scenario. The Stock Market Crash had a significant impact on how Herbert Hoover’s presidency played out.
The cost of the breach was far significant to Target, customers, employees and banks. Important employees lost their position including the CEO (Gonsalves, 2014) and CIO (Baldwin, 2014). Members of Target’s board of directors were threatened with termination (Lublin, 2014). Banks had to reimburse money taken from customers through their credit cards and pay for replacement cards estimating more than $200 million (D 'Innocenzio, 2014). Banks compensated most funds stolen from credit and debit cards, but identity theft was significant in the beginning of 2014 due to an enormous data breaches including Target (Murray, 2014).
Countrywide tried to encourage their customers to refinance or adjust their loans so they can afford to make future payments to their existing loans. By the time they reached this level the damage had already been done. Over a half a million Countrywide customers had the strong potential to lose their homes through foreclosure (Ferrell, et al, 2013). In the summer of 2008, Bank of America purchased Countrywide along with their issues. These issues include current lawsuits and nearly $17 billion in debts.
Everybody was taking over there share. Tax rate was also interrupted from 72%to 28%. Now, when they started investing in money market which was a risky investment, they did not have money to cover the insurance funds. FSLIC was “ill equipped” as per the changed behavior of the thrifts. When FSLIC started to bail out in 1983, it costs FSLIC $20 billion but it had only $6 billion in reserve at that time which led to its bankruptcy.
We were known as one of the richest nations. Unfortunately things went dramatically wrong in 2008. The bank scandal came to light that they had been given companies and investor’s huge loans that the companies could not be paid back. Companies went bankrupt and we went into a recession which was worse than the one seen in the 70’s and 80’s. Emigration and unemployment escalated like we had never seen before.
A housing bubble was created by banks liberally mortgaging out homes to anyone no matter their credit and bundling mortgages together and selling them to other banks. Because of how they were bundled their credit ratings never reflected the actual risk involved; this practice was unethical but profitable until the system collapsed in 2008 and caused massive losses for both banks and homeowners. The losses were so drastic that Congress voted to bail out several of the banks at the expense of the taxpayers, many of whom were unemployed and facing foreclosure. The economy today is still recovering as interest rates and unemployment continue to return to
Interest rates continued to rise in order to reduce inflation; this caused manufacturing and housing to weaken. The savings and loans industry suffered during this time. They experienced frequent account withdrawals, as depositors moved their money to higher-earning accounts offered by commercial banks. The savings and loans industry was already struggling, the recession only made it worse. High mortgage rates destroyed the value of mortgage-backed loans, which is the primary asset of the savings and loans association.
Frank Abagnale Jr gained a bad name in the United States for his crimes fraud, forgery and swindling. He was then hired by the FBI as an expert on forgery and document theft. He wrote about 2.5 million dollars in bad checks from the age 16 to 21. The movie “Catch Me If You Can” tells of Frank Abagnale Jr and his interesting life. Frank Abagnale Jr an FBI agent with expertise in forgery and document theft, has traveled an unlikely path towards the hero’s journey.
First off,excessive consumerism is negatively impacting family. Americans, when they get stressed they shop to counteract that stress, people buy items to help them. This is commonly known as “shopping overload”. Americans possess over one billion credit cards and over one million people go bankrupt every year, some of those one billion is thanks to poor management of their money because their money is on a card instead of in the form of paper. In fact, over one-fifth of Americans live in dying poverty.
DMX Arrested on Charges of Tax Evasion Photo Credit: The Boom Box Earl Simmons or more famously known as DMX, was arrested and charged with tax fraud in New York. DMX is a rapper, record producer, and an actor. According to reports, he was alleged to have hidden millions of dollars in his income statement from the Internal Revenue Service. He avoided paying his taxes which amounted to a total of $1.7 million over the past couple of years from 2002 to 2005. Prosecutors also say that he was engaged in a scheme to conceal his earnings that amounted to millions of dollars from the IRS.