Mortgage Meltdown Essay

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The Mortgage Meltdown: Sub-Prime Lending and Loans Wreaking Havoc on the American Dream ------------------------------------------------- Course: Personal Financial Management ------------------------------------------------- Date: 19 July 2009 Outline I. Introduction II. Definition III. Background IV. Cause/Analysis V. Collateral Damage/People Affected VI. Closing The Mortgage Meltdown: Sub-Prime Lending and Loans Wreaking Havoc on the American Dream "It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness; it was the epoch of belief, it was the epoch of incredulity; it was the season of Light, it was the season of Darkness; it was the spring of hope, it was the winter of despair; we had everything before us, we had nothing before us…” (Charles Dickens – A Tale of Two Cities). That quote by Dickens written more than 150 years ago, never rang more true than today. It is definitely the worst of times for the Housing industry. With foreclosure rates reaching epic heights not seen since the Great Depression, these times are surely our winter of despair. How did we get here? We are the most industrialized nation in the world. America, the land of the free and the home of the brave. We’re a world super power. The place where dreams come true. Now look at us… our economy has been in a 14 month recession, and it shows no signs of rebounding anytime soon. The mortgage meltdown has affected every aspect of business from Wall Street to Main Street, from the Mom-and-Pop stores to the large corporate giants, from the automotive sector to the retail sector. Sure, we have all heard the old saying, “what goes up, must come down.” Although, no one would have guessed that home values would plunge as fast, nor as far, as they have. The meltdown is affecting everyday life for millions of

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