Reference no: EM133215210

Assignment: suggestions for further resources, questions of clarification, or providing context and insight. Avoid simple posts of agreement; if you agree, explain why, and then thoughtfully further the conversation.

Post: As the economy was doing well in the mid 2000's, by 2007 was the start of the great recession. There were many reasons that caused this such as going out of the standard comfort zone for investing during what appeared to be a booming economy. With houses selling and more borrowers getting approved, and banks approving loans with high risk factors. However, the housing market at the time seemed strong and to think that it would crash would be unfathomable. While approving borrowers with less roadblocks in the way and offered low interest rates to reel in new home homeowners. This created an empty hollow core for the banks lending to the housing industry. Then in 2008, the stock market crashed, and large financial institutions started to collapse, such as Bank Of America bought out Merrill lynch. As the economy at a world prospective was declining, international trade and production fell at a faster rate than the great depression. When the government provided monetary and fiscal policies that would help reduce interest rates and control inflation. The Dodd- Frank and Emergency Economic Stabilization act was one of the steps taken to help during this crisis. This helped to amend some of the rules and made provisions on a situation basis. When the federal reservice uses quantitative easing the impacts that is has still divides the rich and the poor. With the federal reserve Making tax cuts can help those with less money in the bank, but this also helps the rich keep their wealth