The Housing Financial Crisis Speech or Presentation

The Housing Financial Crisis - Speech or Presentation Example The housing crisis or the sub prime crisis is getting worse rather than cooling off, this means that the US economy is only going to get adversely affected and this in turn is going to affect all the major economies of the world. The labor market is also getting affected and this means that there will be less job opportunities in the future for the people seeking jobs. The sale of new homes has fallen by almost 50% in the US and people have stopped purchasing new homes in the US because of the housing crisis in the country. Body: I. What triggered the crisis? A. The crisis began in the middle of 2007 and into 2008 1. Affected all the major economies 2. The US economy was perhaps the most badly hit B. Almost the whole world started living on a shoestring, deep pockets were reduced to mere pockets and lucre had certainly fallen short. 1. Countless people got their pink slip while some other got their walking papers. 2. AIG, Lehmann Brothers, Northern Rock, Goldman Sachs are some elite names that suffered the most because of the economic crisis also known as recession. 3. Lehmann brothers filed for bankruptcy while AIG and a few other elites just hanged in there with the skin of their teeth. II. This economic crisis is still having repercussions on countries like Greece and Spain; there are a few other countries that have been not so severely affected by the same. A. The crisis triggered off because of unchecked debt, banks kept issuing loans to people who invested heavily in buying assets. 1. Several things were taken for granted but when proved otherwise there was hardly a place in the world to hide. 2. The subprime crisis triggered off because of excessive borrowing, there was no money to pay back and this is why so many financial institutes went flat broke. B. The Great economic depression triggered off in the year 1930 in the US, it was triggered off by the collapse of the US stock market which is now known as Nasdaq. 1. The economy of the US recovered from t his setback only to suffer from a similar setback of a lesser magnitude which is called recession. 2. Overvaluation in real estate is perhaps the biggest cause of the current economic crisis, it is better known as the subprime crisis in the US. 3. Factors like bad income tax practices have added insult to injury, bad mortgage lending also contributed heavily to this current economic crisis. III. Prevention is better than cure. A. The situation could have been prevented 1. The FED should have taken responsibility 2. Lending should have been checked B. The Bailout package worked to a certain extent 1. The current situation remains precarious. 2. Good things to come in the future for the US economy. Conclusion: The stock market slaughter has weakened almost all the major economies of the world and this is because of the housing crisis in the US. High oil prices have affected all the people across the globe and especially the importers, inflation has been constantly on the rise because of the high oil prices and the same has affected the global economy. The confidence of the investors has taken a real beating because of the financial crisis; people have stopped investing the way they used to before the financial crisis.