How can a housing bubble bring on a recession

Assignment Help Macroeconomics
Reference no: EM13182346

In a speech in late 2011, President Obama argued that: "Probably the single greatest cause of the financial crisis and this brutal recession has been the housing bubble that burst four years ago". What did President Obama mean by the "housing bubble"? How can a housing bubble bring on a recession?

Reference no: EM13182346

Questions Cloud

Define amount of arsenic trichloride and the rest inerts : A 1.784 gram sample containing an unknown amount of arsenic trichloride and the rest inerts was dissolved into a NaHCO3 and HCl aqueous solution.
State the prepeatation and reaction of the grignard reagent : Why was anhydrous, not wet, diethyl either used in the prepeatation and reaction of the Grignard reagent?
Continuous and discontinuos metamorphic reactions : Use examples to distinguish between continuous (sliding) and discontinuos metamorphic reactions, what relevance do these two types of reactions have for the recognition of metamorphic zones?
State the electrophilic aromatic bromination reaction : Why is it uncenessary to include an aluminum trihalide in the electrophilic aromatic bromination reaction of acetanilide with molecular bromine?
How can a housing bubble bring on a recession : In a speech in late 2011, President Obama argued that: "Probably the single greatest cause of the financial crisis and this brutal recession has been the housing bubble that burst four years ago". What did President Obama mean by the "housing bub..
Explain what monomers make up the zylon polymer : What monomers make up the zylon polymer, and how is the monomer made in industrial quantities? Are alternative monomers ever used
How consumption will become more or less sensitive : Unfortunately banks are reluctant to make loans to people who currently have low incomes, even if there is a good chance their incomes will be higher in the future. If people could always borrow as much as they want to, would you expect consumpti..
Describe the difference between exposure to radioactivity : Explain the difference between exposure to radioactivity from a source external to the body versus a source that has been consumed and is therefore inside the body.
What is metamorphic facies : What is metamorphic facies? How does it differ from a metamorphic zone? Assess the view that the concept of metamorphic facies has oultlived its usefulness

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd