RESEARCH PAPER GUIDELINES What topic in macroeconomics would you like to investi
ID: 1111512 • Letter: R
Question
RESEARCH PAPER GUIDELINES What topic in macroeconomics would you like to investigate in more depth? Select a topic of interest to you and prepare a paper. You may develop your Research paper in the following ways: 1. Choose an Economic related issue or topic. Example Government shut down, financial crises and recessions in America, USA vs. China economics growth, Poverty in Newark, Minimum Wage issues, etc. 2. Conduct a full research, explaining what is, how, why, effects of your topic on the people/economy, solutions, supporting your work with facts and figures or literature, etc. 3. The work should be practical, real world, and applicable to the learning objectives of this course. All completed papers/projects must be in APA format. The completed paper should contain a minimum of FIVE (5) pages and should be typed using double spaced and a 12-point Times New Roman font. In addition to the content pages, a title page at the beginning of the paper should contain the title of your paper, the student name, the course number and name, and the term and year. Text should begin on the next page. Your paper should have a one-inch margin bordering your text on all four sides. The grade for the paper will be based on your use of economic theory, the thoroughness, and accuracy of the coverage of the topic, correct usage of the APA citation format, correct spelling and grammar, and correct sentence and paragraph format. (ALWAYS spell check your paper.) The grade for the project will also reflect your use of data and reference sources. Cite all references on the last page of your research paper. The front page and the references page do not count as part of the Minimum five pages. You can email me your questions if there is anything you don't understand about the research paper procedure
Explanation / Answer
TITLE : FINANCIAL CRIS AND RECESSIONS IN AMERICA.
STUDENT NAME:
COURSE NO: AND NAME:
TERM AND YEAR:
The financial crisis of 2007-2008 also known as the global financial crisis and the 2008 financial crisis is considered by many economists as the worst financial crisis after the Great Depression of 1930.. The crisis was followed by a global economic downturn , the Great Recession.
The Great Recession ,which officially lasted from Dec 2007 to June 2009 began with the bursting of an 8 trillion dollars housing bubble. The resulting loss of wealth led to sharp cut backs in consumer spending.Why did this financial crisis happen? This was primarily caused by the de-regulation in the financial industry, that permitted banks to trade in hedge fund trading with derivatives.This led to an increase in demand by banks for mortgages to support the profitable sale of these derivatives.This created the Financial Crisis that led tp the Great Recession.
Economic Recession is a period of general economic decline and is combined with dropping stock markets,increase in unemployment, decline in the housing market. It is less severe than a depression.
Factors causing Recession:
a)A high interest rate causes recession by limiting liquidity or the amount of money which is available to invest.
b) As inflation increases the purchasing power of the consumers go down.
c)The consumers confidence is reduced in anticipation of a bad economy;and hence they spend less.
d) An economic recession leads to a fall in G.D.P.
Poor and irrational lending policies led to many people to buy houses they could not afford because they thought that housing prices would continue to rise.However in 2006, the housing prices began to fall. An increasing foreclosure rate caused panic,many banks and hedge funds who had bought martagaged backed securities incurred huge losses.By August 2007 banks became afraid to lend to each other because they did not count these toxic loans as collteral. This led to the $700 billion bailout from the government to help save several large financial institutions from bankruptcy. By December 2008 employment was declining faster than in 2001 recession and the U.S. fell into a deep recession.
References:
1) "The Fed Community Re-investment Act".federalreserve.gov.
2) " The 2008 Housing Crisis"
3) "Find Report Of The National Commission on the causes of the Financial and Economic Crisis in the United States"
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