English 102 9F
Improving Our Economy
A recession in the U.S. economy began at the end of 2007. Where only a few group of people in Wall Street understood the risky and shady business that was being operated within Wall Street. The creation of the subprime mortgage was the trigger that helped cause one of the greatest financial crisis since the Great Depression. From Wall Street to Main Street the subprime mortgage hurt everyone including our community. We need to help improve our community's economy with the help of local institutions like the Illinois Housing Development Authority (IHDA), the Illinois Department of Financial and Professional Regulation (IDFR), and the Illinois Department of Employment Securities (IDES).
The Illinois Housing Development Authority (IHDA) is created by a self-supporting authority by the state legislature to finance affordable housing across Illinois. In other words, this agency works like a bank that partners with lenders, developers, local government, non-profit, community groups, and others to deliver low-cost financing programs to homes. IHDA uses $2 billion dollars in assets to make help families maintain their home. It also invests in other state funded programs. The organization independently sell these bonds to public and private investors. The IHDA is audit annually and transparent in their bond performance which can motivate investors to trust the program. However, I did not see the organization impose or regulate the leverage limitation. We should along with elected officials propose plan, where each investor will have a limit as to how many bonds they can really afford. This is important because the economy's bad shape was partially due to leverage. Many banks in Wall Street borrowed massive amounts of money so they can earn a lot more money. Obviously, banks could not pay back due to the outrageous unbalanced leverage ratio which resulted in many banks to lose millions of dollars....