Demand Essay Samples and Topic Ideas

demand. In 2007 came the economic recession which saw the prices start to fall. The prices fell so fast, and within no time they were below their acquiring worth. This price fall led to many of the consumers involved defaulting the mortgage terms, and the burden was now shifting to the financial institutions which had released the funds (McDonald & Stokes, 2013). The only way out was the Federal Reserve to back up these financial institutions for they could otherwise have collapsed. It issued a $700 billion dollar bailout to them. The rapid increase in the number of mortgages between 2004 and 2006 is attributed to the economic crisis of 2007. During this period alone, 20% of the United States...