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Budget Deficit: Subprime Mortgage Crisis
Homebuyers that had below average credit, could now buy affordable houses because they were given loans. When house prices peaked, mortgage debt increased, which caused New Century Financial Corp., to file for bankruptcy. After they closed, many other subprime lenders had to close. Housing prices declined so many borrowers that own these houses, weren't able to sell their houses at a price that would pay off their mortgage debt.
-Result
-http://www.federalreservehistory.org/Events/DetailView/55 -
Budget Deficit: Stock Market Crash
The Lehman Brothers declared bankruptcy in September this dropped the Dow and people got nervous. The Federal Reserve said it would bail out AIG with loans so people stopped investing. The Bank Bailout Bill was presented and stated that they wanted to buy companies in danger of going under. When they did'nt pass this bill the Dow 777 points. This is budget because it reflects the government's economy dropping greatly.
-Result
-https://www.thebalance.com/stock-market-crash-of-2008-3305535 -
Leadership Deficit: Affordable Care Act
Also known as Obama Care, it is a bill passed in order to ensure that everyone in the United States has affordable health insurance. While the goal was to make healthcare affordable, insurance companies do not want to lose customers due to the rise of health insurance prices.
-Fiscal
-http://nypost.com/2016/08/29/why-the-affordable-care-act-is-anything-but-affordable/ -
Trade deficit: US trade deficit increased 33% in 2010
The United State’s trade deficit jumped 33% in 2010, the largest jump seen in a decade. This was caused by the increase of oil prices. Also we greatly increased our imports from China, depending heavily on one country hurt our deficit. This is apart of the trade deficit because it is directly related to the trade problems with China.
-Fiscal
-http://www.bbc.com/news/business-12431066 -
Saving Deficit: Social Security Deficit reaches $80 Billion
As of 2014, social security has exceeded its tax income and its non-interest income. People will have to pay more taxes in order to save for their retirement, or social security will be cut and people will not be able to have enough money saved for retirement. This is savings since people have been investing money so they will have enough saved for after retirement.
-Fiscal
-http://www.cnsnews.com/news/article/barbara-hollingsworth/trustees-social-security-will-run-84-billion-deficit-2015 -
Budget Deficit: Trump’s plan
Trump's plan to make tax cuts to help the deficit and make the people happier. The worry with this is that it will bring the federal debt higher since there will be less tax money coming in. To make up for this, the federal spending should be cut by ⅔. This would risk a lot of important departments being funded. This is budget since it relates to the amount of money the government is getting versus spending.
-Results
-http://www.politico.com/story/2016/07/donald-trump-budget-deficit-225389
