Financial Institutions Of The Housing Crisis Essay

US Financial Institutions Contributions to the Housing Crash Previously stated, the federal funds rate was cut to as low as 1% during the early 2000’s. Not only did this turn investors away from investing in treasury bonds, but it also cheapened the cost of borrowing money for banks. This spurred action on behalf of financial institutions to offer investments connected to the continually increasing, and seemingly risk-free, housing market. Due to a combination of greed and ignorance on behalf of financial institutions and credit rating agencies, the proverbial housing bubble increased until it finally reached its peak in 2006, and then began to burst at the end of that year and on into 2007. What exacerbated the decline to such a high degree was the strong connectivity of the financial institutions through their complex transactions that related to mortgages. The main factors that were involved in the impending crash were the increased offering of subprime mortgage loans and collateralized debt obligations, or CDOs. Critically an alyzing the effects of these products will aid in the conversation of financial institutions role in sparking The Great Recession. Securitized mortgages, also known as mortgage-backed securities, is not a twenty-first century concept. Since the 1980s, securitized mortgages have transformed the financial sector â€Å"By transforming illiquid [mortgages] into tradable securities, [which] has helped channel cash flow to borrowers andShow MoreRelatedThe Global Financial Crisis Of 2007-20081123 Words   |  5 PagesThe Global Financial Crisis of 2007-2008 is the worst financial crisis since the 1930’s The Great Depression (Reuters, 2009). Even if bailouts of banks by national governments prevented the collapse of major financial institutions, worldwide stock markets continued to drop. 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There were many factors that contributed to the cause of The Global Financial Crisis and many effects that emerged, because the impact it had on the financial system. The Global Financial Crisis started because of house market crash in 2007. There were many factors that contributed to the housing market crash in 2007. These factorsRead MoreThe Financial Crisis Is Considered By Many People As One Of The Worst Recession Since The Great Depression Essay1530 Words   |  7 PagesJ. Sisson 01 Oct 2016 The 2008 Financial Crisis is considered by many people as one of the worst recession since the Great Depression that occurred from 1929-1939. The loss for that week was an astounding $30 billion. This was ten times more than the annual federal budget and far more than the U.S. had spent in WWI (30B dollars would be equivalent to $377,587,032,770.41 today). Additionally after posing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of

Goya and Research on His Works Essay Example For Students

Goya and Research on His Works Essay I used to draw as a child, but then again, who didnt? But as I dove into my art class, I found out that art was a lot more interesting than I thought. I visited the Getty Center as a young child, and as memory portrays it, the museum was boring and strict. So when I found out I would be venturing there once again, I was uninterested and sullen. To my surprise, I loved the trip. The architecture was the first thing to appeal to me, and my grandma, who was from Korea, had never seen anything like it! I loved the different paintings, some telling tales of old. I learned that to all art is stale and boring, but can tell you a story if you Just stop and listen. The two paintings that I have decided to compare and contrast are Saturn Devouring His Son by Francisco De Soya and The Sleep of Reason Produces Monsters also by Francisco De Soya. I chose Saturn Devouring His Son by Francisco De Soya because it stood out to me. My childhood drawings were no different from any other adolescent boy, monsters destroying cities, giants eating cars, violence and fiction. When I saw Saturn Devouring His Son, my childhood memories clicked and it seemed like an adult erosion of any childs drawings. The painting shows Saturn with wild hair, bulging eyes, fists dripping in blood, and a frenzied look on his face. He is crouching in the darkness, violently eating a child. From a simple glimpse, this painting might seem pure carnage and evil, but as with all paintings, there is a message it conveys. In Greece-Roman mythology, the Sky and Earth bore Saturn and his siblings (the Titans). When the Sky pleaded for Saturn to kill his father, he agreed and afterwards married his sister Rhea. Some time later it was prophesied that one of Saturn children could be his demise, so Saturn devoured every child that was born except one, because he was tricked. Some assume that Soya got his inspiration for this painting from Peter Paul Rubes 1639 piece that depicted Saturn with a scythe and constellation, tearing into a child, but with no blood or gore. Francisco De Soya actually painted this work along with the 14 other Black paintings in a house called Quanta Del Sword. This series is known as is Soya took away any indicator and instead painted the vicious scene of cannibalism that would have taken place. There are no indicators that this painting is mythological in any way. The reason Soya chose a female instead of a male corpse is most likely because Soya was struggling with his own old age and that he had bad luck with love and happiness. Saturn in Greece- Roman mythology represents lost time and Soya was not only painting a myth, but painting a message that time was attacking his chance at love and youth. The other artwork that I chose is The Sleep of Reason Produces Monsters also by Francisco De Soya. I chose this piece because I liked the artwork and