Research Project on Financial Crisis

Research Project on Financial Crisis.
Research Process on Financial Crisis Louis Cappelli 2/18/2012 From the research I have performed so far, I have been able to isolate the main issues that caused the financial crisis in the 2000’s. It seems to be that this whole crisis revolves around the major banks in America. I have been through a good amount of articles based upon the financial crisis so far, with each of them stating at least once something about the crisis relating to the banks.
As I was finding this material, I noticed some other similarities in these resources involving the Crisis. For instance I noticed major names like Fannie Mae and Freddie Mac, who both seem to have a major involvement in loans in mortgages in America. From these sources I found the articles specifying what were the main causes of the financial crisis to be most helpful. Since I am not familiar with this subject and economic crisis at all, the articles that were more simplified for the general public were the ones I could better understand.
From one article on About. com, I was given some of the major causes that of the recession involving the banks and what they did wrong. For instance I learned that in the beginning the banks didn’t worry about their credit and were giving out loans to people who weren’t qualified for them. Another thing that I took note upon over my research was the constant mentioning of a subprime mortgage. Apparently one of the first initiators of the financial crisis was the “subprime mortgage crisis”.

These mortgages were granted to those with poor credit, but unfortunately the rate of these mortgages skyrocketed, leaving many lenders with financial difficulties resulting in bankruptcy. From the research performed and sources I thought were most reliable and factual, I fell as if the crisis we are dealing with is mainly in fault of the banks and loan mortgage cooperation’s in this country. I seems as if they messed up big time, and in result we all have to pay for their actions.

Research Project on Financial Crisis

superadmin (28431)
New York University

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