Discussion

Discussion
Your Name
Subject and Section
Professor’s Name
February 13, 2021
1 Discuss and Explain why the decline in housing prices led to a major financial crisis.
1 The reason why the decline in housing prices also led to financial depression was because of the low-quality mortgage loans that were aggressively given towards home and ‘aspiring’ home owners in the United States. Particularly, rather than using strict and reliable standards to assess the payer’s capacity, mortgages were given to almost anyone in the hopes that housing prices would continue to increase, while buyers could relatively pay off their debts without much problem.
However, since many of the mortgagors needed to take huge sums of loans from the bank without assurance of their capacity to pay, they weren’t able to make their payments. It was after most buyers went default that the financial crisis happened.
2 Discuss the potential benefits and costs of the adoption of the Euro.
2...