The reason for the crisis Essay Example | Topics and Well Written Essays - 500 words

The reason for the crisis - Essay ExampleIt flush toilet be said that the United States government failed and one of the reasons wherefore the crisis happened is on the policies that they had engaged. The easy money form _or_ system of government can be said to have contributed to the U.S. crisis but cannot be blamed solely for what happened. Easy money policy created the U.S. housing bubble that can be said to have a very important effect on the U.S. economy. The United States housing bubble is an economic bubble which affects many parts of the United States housing market. In early 2005, the housing market reached its peak. There has been unprecedented rise in the average footing of housing globally. There was a huge price hike of the housing. Though there were intermittent cooling effects of prices, these were not enough to off-set the price hike. This can be said to have contributed to the financial mess of the United States. Any collapse of U.S. housing bubble has a direct effect not lonesome(prenominal) on home valuation but also on the nations mortgage market such as real estate. The lower stakes rates for the long term, fixed-rate mortgage also contributed to the U.S. financial crisis. I dissent about how Mr. Greenspan blamed the outside forces, which the government cannot control, as the reason of the U.S. financial crisis. interestingness rate is a very influential and dominant factor in economics.