Write a 2 page essay on Short answer questions about an economic article.
Housing craze bubble occurred due to Goldman’s by reducing the standards of underwriting mortgages rates. They were able to trick pension schemes funds and insurance into buying into their idea. The mortgage package they offered had hidden irregularities meant to exploit the investors. Many rushed into investing thus creating a large real estate whose investment were being speculated by Goldman. Eventually, the housing bubble crumbled and investors were fleeced of their investment (Higgins 89).
$4 a Gallon bubble came into being when Goldman influenced large investment companies to invest in the speculative oil market. When the world market prices declined, Goldman’s investors lost billions of investment. However, it was instrumental in manipulating pump prices rise to $4 a gallon thus continually robbing from the public.