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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 630 |
Essay's paper body
Didn’t these financial institutions know that these people could not afford their loans or mortgages before granting it to them? In fact, yes they did but they chose to bend the rules. This triggered a topple-down effect and the economy is paying for it. If this bailout is implemented, tax payers are also paying as well...
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What needs to be implemented are finding ways to ensure bad loans are not made, and making lenders acknowledge these loans on their balance sheets. Moreover, new reserve requirements for banks and lenders may be required. Implemented should be legislation that would combine housing tax incentive programs and federal spending that supports housing in order to make it easier for developers to take advantage of these opportunities...
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