President George W. Bush’s administration was plagued with a lot of political and business scandals. The mortgage fraud scandals resulted in increased dangers of “foreclosure-gate” that threatened the global financial system. During his term in office, Bush was determined to make the dream of homeownership a reality for all Americans. He believed that Americans would do better when they own homes. In the process of pushing for the expansion of home ownership, Bush failed to understand that not every America could afford to own a home. Bush’s policies made banks to peddle easy credit, and Wall Street chieftains loaded up on mortgage-backed securities regardless of the risks involved. As a result, the housing bubble that had plagued the United States continued as no one was willing to stop its spread. Bush’s policies drove the nation to the brink of economic collapse and global financial crisis. Millions of Americans are now facing the dangers of foreclosure, and the bailout cost to taxpayers is running into millions.
Both the government during the Great Depression and the great crisis in Bush’s admiration knew the cause of the problems but failed to take corrective actions. During Bush’s reign, the FBI warned the public of the possibility of an epidemic of mortgage fraud with no success. Rampant fraud and accounting scams like Equity Funding in the 1920s helped cause the economic crash that led to the Great Depression. Conflict of interest and corruption was prevalent between financial systems and government officials in the 1920s. The fraudulent pyramid schemes in Wall Street led to a rise in discount rates. The Collapse of the Wall Street bubble in 1929 eventually contributed to the Great Depression. During this period, deregulation policies passed by the government paved the way for fraudsters in banks to launder “counterfeit” mortgages to the general public.
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