Why is N. Ferguson suspicious of what he calls the “American Dream” where everyone owns their...

Why is N. Ferguson suspicious of what he calls the “American Dream” where everyone owns their home? What roles do lenders play in this “dream”? What is an example in recent economic history of this “dream” gone wrong?

Solutions

Expert Solution

Lenders play a very important role in fulfilling this 'American dream' when everyone has their own home. The recent economic history of this dream gone wrong is 2008 financial crises of USA. In 2008, the housing bubble that was generating since early 2000 hone burst. So the prime of that bubble burst was inefficinet or irrational behaviour of lenders. They were lending above their capacity due to their blind faith in real estate market that I won't burst.

So, it is very important for this American dream that lenders fulfill their role with par efficinecy and rationality. Only then this dream can be achieved without any loss.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

the American Dream essay: What are some of today’s obstacles to achieving the American Dream? Which...

the American Dream essay: What are some of today’s obstacles to achieving the American Dream? Which groups of people have or have had trouble attaining "The American Dream"?

What does the American Dream look like in 2018? Does the American Dream even still exist?...

What does the American Dream look like in 2018? Does the American Dream even still exist? Why or why not?

Jonathan Lark’s lifelong dream is to own a restaurant. He owns a premium site for a...

Jonathan Lark’s lifelong dream is to own a restaurant. He owns a premium site for a restaurant across the street from the local university. Now he needs to decide what kind of restaurant to open. Recently, Jonathan began to investigate one of the fastest-growing fast-food franchises in the country, Pepper Roni Pizza. A Pepper Roni Pizza franchise costs $40,000, an amount that is amortized over 15 years. As a franchisee, Jonathan would need to adhere to the company’s building specifications....

a. What happened in the 1970's that broke the American dream?

a. What happened in the 1970's that broke the American dream?b. What is the relationship between the US trade deficit and the growth of foreign liabilities on the balance sheets of commercial and investment banks?

What do you thought about American dream?

What role does ideology – such as the core belief in the American Dream – play...

What role does ideology – such as the core belief in the American Dream – play according to the conflict perspective? A. Ideology draws attention away from structural inequalities that explain why members of some groups are much more likely to succeed than others. B. Ideology justifies unequal rewards by referring to individuals’ character and moral virtues or lack of. C. Ideology exists to protect and promote the distinctive interests of a particular class, status or authority group, therefore keeping...

Discuss why there is such income inequality within the United States. What role does the American Dream play in the context of this financial reality?

'Dream Job' Paper due. why you want to be a police officer explain what your dream...

'Dream Job' Paper due. why you want to be a police officer explain what your dream job is, duties that you would be responsible for, job qualifications, how you apply for the job, and any incidentals you feel pertinent. ?

Watch “Heist, Who Stole the American Dream?” By Frances Causey and Donald Goldmacher. What are your...

Watch “Heist, Who Stole the American Dream?” By Frances Causey and Donald Goldmacher. What are your thoughts?

Jackson owns a building where he rents to tenants. Robertson is suing Jackson for 350,000 for...

Jackson owns a building where he rents to tenants. Robertson is suing Jackson for 350,000 for an injury he sustained while living in the building. The attorneys performed estimates of the value of the lawsuit and outcomes below: Based upon the facts and potential outcomes below; how will Jackson handle each probability. A, Assume it is likely that Jackson will win the lawsuit with the amount being 240,000 B. Assume it probable that Jackson will settle the lawsuit for an...

Subjects