Inside The Financial Crash – 60 Minutes

inside The Financial Crashvideo 60 Minutes Inside The Financial Cr

1.) Inside the Financial Crash VIDEO: 60 Minutes Inside the Financial Crash After watching the Inside the Financial Crash video, how did this financial crash impact you, your family, a career you may have been laid-off from, and/or someone you know that were affected? DIRECTIONS: To get started, click on the +Pin option on the upper right hand corner and write your response. Click on "How Points Work" to see how you can earn your points. Once you reach 100% you will earn your full 20 points in Blackboard. Please note that points can be deducted if the post is not high quality.

2.) Respond to Student Briandrick Class, The 2007 financial impact affected my aunt in a big way. She had just purchased a 5-bedroom two-story house in 2004 located in New York. She was a victim of the add-on to your mortgage if you don't pay. She was always bragging about how her house payments were so cheap despite living in New York, but she failed to realize she was only paying the minimum amount required on the loan. In 2009 she realized that she was 20,000 dollars behind on her mortgage payment due to the lending company continuously adding to her loan rather than reaching out and trying to make her pay more to get the loan current. Luckily, the bank helped her refinance her house, but it was like starting all over with her payments again. The 2007 financial crisis is the reason it is so hard to get car and other loans at good interest rates today. I wonder what the economy would be like if this crisis never happened.

3.) WEEK 5 HOMEWORK: TEXTBOOK (70 PTS) If you need help submitting assignments, please click here for more information. There are three (3) types of textbook-based homework items located at the end of each chapter. These include Discussion Questions (DQ), Exercises (E), and Problems (P). Some homework items have been custom created. Complete the following from the textbook: Chapter 9: P6, P9, P10, P11, P12, P13, P15.

4.) There are three (3) types of textbook-based homework items located at the end of each chapter. These include Discussion Questions (DQ), Exercises (E), and Problems (P). Some homework items have been custom created. Complete the following from the textbook: Chapter 8: DQ1.

5.) There are three (3) types of textbook-based homework items located at the end of each chapter. These include Discussion Questions (DQ), Exercises (E), and Problems (P). Some homework items have been custom created. Complete the following homework scenario: Bob and Lisa are both married, working adults. They both plan for retirement and consider the $2,000 annual contribution a must. First, consider Lisa's savings. She began working at age 20 and started making an annual contribution of $2,000 at the beginning of each year, making 13 contributions. She worked until age 32, then left full-time work to have children and be a stay-at-home mom. She left her IRA invested and plans to start drawing from it at age 65. Bob started his IRA at age 32. For the first 12 years of his career, he used his discretionary income for other expenses. At age 32, he made his first $2,000 contribution and contributed annually up to age 65, totaling 33 contributions. Both IRAs grow at a 7% annual rate. Write a 2-3 paragraph summary creating a chart summarizing the investment details for both Bob and Lisa, and explain the results in terms of the time value of money.

Paper For Above instruction

The economic repercussions of the 2007 financial crisis were profound, affecting individuals, families, and entire industries worldwide. The crisis, triggered by the collapse of the housing market and the subsequent failure of financial institutions, led to widespread unemployment, loss of savings, and economic downturn. Personally, such a crisis can impact individuals profoundly—causing job losses, financial instability, and psychological stress. For instance, many people, including close acquaintances and family members, faced layoffs or significant financial setbacks, which disrupted their financial stability, altered life plans, and increased uncertainty about the future.

In particular, this crisis influenced my family’s financial stability, exemplified by the experience of my aunt. She had purchased a house in New York in 2004, relying on a mortgage that initially seemed affordable due to low payments. However, the crisis led to a surge in loan interest and add-on charges, making her mortgage unaffordable by 2009. She discovered she was $20,000 behind on her payments as lenders kept adding to her debt through refinancing schemes, with little regard for her ability to repay. This situation highlights how the crisis not only triggered immediate financial distress but also altered credit availability, restricting access to affordable loans and credit products for many Americans. Consequently, the aftermath of the crisis contributed to prolonged financial strain and led to widespread hesitancy among lenders and borrowers alike.

The 2007 financial crisis precipitated significant changes in the financial landscape, including stricter lending standards, increased regulatory oversight, and changes in monetary policy. These measures, while aimed at preventing a similar crisis, also increased the difficulty of obtaining loans—such as auto loans or mortgages—at favorable interest rates. Such restrictive lending practices have led individuals to delay major purchases or investments, affecting economic growth and personal prosperity. The crisis also exposed vulnerabilities within the financial system, emphasizing the need for more robust regulation and oversight to safeguard economic stability.

The impact of the crisis extended into retirement planning and investment strategies. For example, understanding the importance of compound interest and the time value of money becomes even more critical during times of economic upheaval. The scenario involving Bob and Lisa illustrates how disciplined contributions over time, compounded at a steady rate, can significantly influence retirement readiness. Lisa’s early start at age 20 with smaller contributions benefits from the power of compound interest, though her pause in contributions at age 32 impacts her total accumulation. Conversely, Bob’s consistent contributions starting at age 32 over a longer period at the same interest rate demonstrate how regular investing can compensate for a later start. These examples underscore the importance of starting retirement savings early and maintaining consistent contributions to maximize growth through the power of compound interest.

References

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