Rise and Fall of Countrywide Home Loans, the Mortgage Crisis, and the Essay - 1

Rise and Fall of Countrywide Home Loans, the Mortgage Crisis, and the Default of the American Dream - Essay Example It is evidently clear from the discussion that the absence of timely solutions yielded to untold stress and even depression among the citizens who resulted in diverse coping skills depending on one’s inclination. The current crises comprise mortgage recession and unemployment crises that have continued to persist despite the current regime’s recovery efforts (Johnson, 2010). Mortgage crisis that is evident currently, emanated from the Americans' enthusiasm coupled with greedy to own houses (Johnson, 2010). Since owning a house as a property is a pride towards the attainment of the glorified â€Å"American Dream† that has made numerous people in 2007 to be victims of the mortgage crisis. The then mortgage rates and even reimbursement installments where manageable, since banks aided willing borrowers in the project via offering low rates. This was easy cash meant for borrowers, who attained it from option-ARMs to qualify for mortgages with a title or no documentati on. In America, that time almost every person qualified for a mortgage even those having poor credit terms, for instance, subprime borrowers. Unfortunately, the rates and installments meant for the borrowers underwent unpredictable alterations due to the global economic meltdown. This prompted people having their installments paying lagging behind by even three months besides other loans. In addition, the issue of foreclosure crept in due to augmented rates, where over 50% of citizens were at the verge of being homeless (Johnson, 2010). Hence, contributing mutually to physical and psychological miseries result in diverse coping behaviors. Unemployment is an economic challenge, which America currently is undergoing coupled with meager earnings from the majority of its permanent jobs. Joblessness is an aspect that is contributing immensely to the dilapidation of numerous citizens’ health, which at some occasions when it extends beyond certain limits yields to chronic maladies ( Hunter & Gillen, 2009). For instance, mental and psychological related diseases that emanate from prolonged unemployment or even financial difficulties due to unsatisfying scanty wages. Studies depict; individuals who have experienced prolonged joblessness probably over 25 weeks are more likely to suffer from mental complications than those employed, despite the salary they attain. Statistics indicate that whites have the lowest percentage of joblessness of approximately as contrasted to other races; a reason that makes the most affected people being, not the original natives (Johnson, 2010). The study also encompasses those people from the marginalized races, who form the majority and at one time in their life thought that committing suicide was a better option. Recession currently has profoundly affected numerous American aspects that entail both private and public enterprises. Its gravity is due to its nature that it affects all the citizens despite they are either high or lower earners since it entails significantly slowing the economy of the state. Hence, result in the retrenching of employees due to scanty profits. For instance, foreign firms those have invested in America, once they realize that they are not making the anticipated profits. They decide to shrink the workforce, thus leaving numerous people jobless and experiencing harsh financial difficulties, which affect them psychologically due to stress or hopelessness.