Information About Financial and Security Regulations
When the economy went into a recession in 2008, there was a ripple effect that impacted the lives of millions of different people. The housing bubble was one of the biggest reasons that economy went into a recession. There were many people that were able to purchase houses with little to no money down, on a mortgage that had an introductory payment that was much lower than it should have been. Additionally, many of these mortgages were lent to people that did not have the credit history to warrant approval. These mortgages were then wrapped into securities that gave them a triple A rating to investors. When too many people started to default on their mortgage, the impact became clear. As a precaution to help avoid a financial disaster like this again, the government created new financial and security regulations to stop this sort …