Revision

OLD

Disaster struck in 2008 and 2007 the market crashed, homes were lost, there was a high unemployment, and all were in debt. The economy was failing at a fast rate and there was no hope at the end of the tunnel. Many people were shocked that the economy had fallen so hard. The failing economy was partly the governments fault. In 2000 the government lowered interest rates in order to "limit the economic damage". (“Credit Crisis - News - The New York Times” 2) These lower interest rates made the mortgage payments cheaper, so demand for houses grew, sending prices up. Current home owners took advantage of low interest rate to refinance their existing mortgage. As the industry grew the quality of the mortgages went down. (“Credit Crisis - News - The New York Times” 2) People with low income were encouraged by the Government and banks to by houses and take out large mortgages. Some of these people, not very surprisingly, could not pay off their mortgages. (“Bank Bailouts: Debatabase - Debate Topics and Debate Motions” 1)

REVISED

In 2008 the market crashed, homes were lost, the unemployment rate went up, and all were in debt. The economy was failing at a fast rate and there was no hope at the end of the tunnel. People lost their jobs and lost their homes. Many people were shocked that the economy had fallen so hard. For such a long time the economy had prospered. The state of the economy was partly caused by the governments.

In 2000 the government lowered interest rates in order to "limit the economic damage." (“Credit Crisis”, 2) These lower interest rates allowed the mortgage payments to be cheaper. Demand for houses grew, and the housing market experience record profits. Houses were being sold for more than what they what they were actually worth. Current home owners took advantage of low interest rate to refinance their existing mortgage. As the industry grew the quality of the mortgages went down (“Credit Crisis” 2). People with low income were encouraged to buy houses and take out large mortgages. The government felt as though everyone should have a house. Many took advantage of the low mortgage payments and bought houses they couldn’t afford. Many of these homeowners were unable to make their mortgage payments and defaulted on their loans (“Bank Bailouts” 1).