22112A – Task 1 - Financial Market Sector 1. Have you selected a suitable financial market? Please find below a personal example of our recent dealings with a finance and mortgage broker. My partner and I have recently moved to Brisbane from Gladstone. We were fortunate enough to take advantage of the current economic climate of high house prices in Gladstone‚ and sell our Gladstone property. With opposite economic climates here in Brisbane with house prices quite low - we decided we could
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THE FEDERAL RESERVE AND THE FINANCIAL CRISIS Lecture 2: The Federal Reserve after World War II 1. Early Challenges 2. The Great Moderation 3. Origins of the Recent Crisis What Is the Mission of a Central Bank? • Macroeconomic stability - All central banks use monetary policy to strive for low and stable inflation; most a so use monetary policy to try to promote stable growth in output and employment. • Financial stability - Central banks try to ensure that the nation’s financial system
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payment assistance programs‚ and government funded educational opportunities (i.e. the Home Ownership Center of Greater Cincinnati)‚ the real estate and mortgage lending industries will continue to flourish. However‚ there are some unethical lending practices that are threatening the housing industry as a whole. Those involved in the mortgage lending process have some duty to the borrower. They are expected to perform their specific duties in an ethical manner and have some form of direct or
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relating to the banks. As I was finding this material‚ I noticed some other similarities in these resources involving the Crisis. For instance I noticed major names like Fannie Mae and Freddie Mac‚ who both seem to have a major involvement in loans in mortgages in America. From these sources I found the articles specifying what were the main causes of the financial crisis to be most helpful. Since I am not familiar with this subject and economic crisis at all‚ the articles that were more simplified
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2008‚ banks gave out mortgages that individuals couldn’t afford. These individuals were not financially qualified; they were not earning enough salary. Firms like Fannie Mae and Freddie Mac got extra greedy and sold a whole lot of bad mortgages‚ with high interest rates to individuals that were also not financially stable in order for them to earn high fees in the mortgage transactions. This led to the main factor starting the U.S. crisis which is known as the ‘sub-prime’ mortgages‚ loans couldn’t be
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Depreciation $320‚000 $320‚001 $320‚002 EBITDA $1‚599‚500 $928‚875 $258‚250 Furnishing Interest $110‚000 $110‚000 $110‚000 20yr Mortgage Interest $182‚000 $182‚000 $182‚000 TOTAL INTEREST $292‚000 $292‚000 $292‚000 TAXES (40%) $395‚000.00 $126‚749.60 -$141‚500.80 Furnishing Principal $180‚160 $180‚160 $180‚160 20yr Mortgage Principal $49‚713 $49‚713 $49‚713 TOTAL PRINCIPAL $229‚873 $229‚873 $229‚873 NET INCOME $362‚627 -$39‚749 -$442‚124 DIVIDEND PAYMENT $29
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series of discount banks for home mortgages. This would assist in increasing the likelihood of Americans owning a home and not feeling that they were restricted because of financial pressures. Fannie Mae‚ Ginnie Mae‚ Freddie Mac were created to help bail out banks that had a growing number of defaults in mortgages. These three enterprises made it possible for banks to offer mortgages to riskier clients who normally would not
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sub-prime mortgage lender‚ considers itself “the proud sponsor of the American Dream”‚ but many consumers and former employees of Ameriquest feel otherwise‚ as they tell nightmarish stories of deception. The company is one of the nation’s leading private sub-prime lenders. Originally known as a bank named Long Beach Savings and Loan‚ Ameriquest has undergone significant change since its 1979 inception. The company moved its corporate office to Orange County in 1991‚ where it became a pure mortgage lender
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The impact of global financial crisis on the United Kingdom Introduction This report will examine the affects of the global financial crisis‚ which was a result of the collapse of the sub-prime mortgage market in the United States‚ on the UK economy. First of all‚ it will look at the background of the global financial crisis. Secondly‚ this paper will analyses why the UK economy has been influenced by the global financial crisis‚ what effects of the financial crisis on the United Kingdom have
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of dollars. At the same time‚ banks ’ stock market capitalization was cut in half. This of course set off a chain of events that rippled through the financial realm. Financial Institutions were now realizing losses because of the defaults on mortgages which then when they tried to make claims on their credit default swaps (CDS) there was not enough liquidity by firms such as AIG to pay these claims. This of course led to the bailouts‚ however we will get to that shortly. All of these events
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