Role Played by Real Estate and Mortgages to Plunge the World Into a Financial Crisis

REAL ESTATE AND MORTGAGES AS CAUSATIVES OF GLOBAL FINANCIAL CRISIS Introduction A study on the impact of real estate bubble and mortgages in relation to the global financial crisis is an item that has over time elicited mixed reactions but with some taste of consensus that they were causative to the crisis. After the Great Depression in 1930 that resulted into a devastating economic climate, the Global Financial Crisis of 2008 mirrored the challenges faced in 1930 by the United States economy and the world. The essence of the study is to ascertain the role played by real estate and mortgages to plunge the world into a financial crisis especially the United States economy. The research will yield tremendous progress when it comes to developing a mechanism that identifies substantive data that will guide policy formulation regarding the regulation of financial institutions.

The macroeconomic impact of the financial crisis requires the reliance of well thought out research project that will develop objective findings on what might have caused the meltdown. The objectives of the research are to demonstrate and weigh into the discussion of the impact of real estates and mortgages on the financial crisis. The need to understand how better the issue would have been handled would be obtained from different sources of data and scholarly assertions to deliver better judgment on the events surrounding the issue. Even though the global financial crisis has come with a lot of theories that suggest the reasons behind such an occurrence, it is without a doubt that there was some form of imbalance applied into the macroeconomic system with the rippling effect of a crisis (Mishkin, 2009, 574).

The study will demonstrate the influence of real estate and mortgages when it came to triggering the global financial crisis. The consistent trend of seeking arbitrage by deregulation has often been a populist move that does not yield any considerable returns. The failures of the systems to look into the different indications of a possible crisis engineered by most financial institutions are regarded as the causative impact that triggered the global financial crisis. Background of the Study and Research Questions The rationale of the study involves the need to deliver the plausibility of real estate and mortgages being the causative factors that led to the global financial crisis. The technological advancement is aimed at improving the way of life and through innovations develops a framework that makes the consumer experience satisfying.

The changes experienced in the society had far-reaching impacts on the way the lives of people would be handled especially financial governance and growth. The growing trend and irrational behavior among consumers led to the housing and real estate bubble which saw the upsurge of rental values and price charged to different properties. The literature review will seek to develop the scholarly input on the subject together with explaining the relevance of the study for business and society use to structure their strategic plans on a trajectory of success. The project will create an undertaking that identifies the gaps and best fit methodology that offers an in-depth data collection procedure which makes the findings credible for policy formulation. The project will establish findings and a discussion on the outcome of the study to reap from the relevance of the investigation in understanding the relationship between real estate bubble and mortgages as causatives of the global financial crisis.

Research Methodology and Context The objective of the research is to understand whether real estate and mortgages are causative factors that triggered the global financial crisis. The aim of the project was to develop an understanding of the investigation as to whether the behavior of consumers towards a product in the market develops an attitude that influences their irrational consumption pattern across several market segments. The sources of evidence for the study get information from the interview process whereby questions will feature important aspects of the global financial crisis. Moreover, the reasons as to why consumers are informed and cherish the contemporary market compared to traditional models come handy to the research regarding the delivery and access of information on the impact to the consumer experience.

The decision to take on a convenient sampling approach will be significant since the model allowed the study to obtain both the basic data and trends on the subject under research rather than reliance on a randomized sampling. Convenient sampling is easy and less costly in comparison to probability techniques due to the efficiency and time-saving. The interviewing undertaking will be a very efficient source of information in the sense that it provides the respondent with an opportunity to reflect and provide a one on one account of the experiences together with their thoughts to develop a perspective on the research objective (Williams, 2015, 14). The analysis will take an in-depth organization of the collected information to develop a structure that makes it meaningful in identifying recommendations about the subject under study.

Data analysis is often a continuous exercise from the fieldwork through to the completion of data collection exercise. The essence of the process is to equally obtain the substantive information about the input by the respondents at the ground since it will be a one on one engagement with participants exposed to different experiences. The data will be put to a process of review at the field work as an exercise to uphold the standards of accuracy and credibility giving chance to the researcher to seek clarification on contentious proclamations in the interview process. The data collected will be analyzed through a thematic technique that enables the researcher sort the evidence adduced during the interviews with a view to establish common assertions and identify the different revelations.