In September 15, 2008, New York-based investment bank and financial services firm Lehman Brothers filed for Chapter 11 bankruptcy. The bankruptcy filing, which remains the largest in American history, had many far-reaching effects on both domestic and foreign economies. The bankruptcy of Lehman Brothers and resulting Credit Crisis of 2008 led to sweeping domestic financial regulatory reform. New legislation, such as the Dodd-Frank bill – coupled with the creation of the Consumer Financial Protection Bureau stand as two examples of measures the government took to guard against future disasters in the wake of this historic bankruptcy. Nevertheless, it took years for investor and consumer confidence to reenter the market.
his paper opinions literature on the connection among housing finance, financial increase and poverty. at the same time as it's miles obtrusive that housing production creates jobs, the assessment well-knownshows that there's a need for more studies to decide the long-time period monetary advantages of housing and whether housing finance especially can be an powerful tool in eradicating poverty. The restrained proof is due in component to limits in records and the want to utilize strong econometric techniques to decide the route of causality in these relationships (i.e. does accelerated monetary increase result in accelerated demand for housing and subsequently housing production and finance or does housing production and finance lead to expanded financial boom and lower poverty). even though little direct evidence changed into observed, the financial deepening literature indicates that as housing finance deepens monetary markets, it can play a position in poverty relief. This relationship ought to be investigated similarly. 1. advent whilst the point of interest of this assessment is to summarize empirical evidence concerning the relationship among housing, economic growth and poverty, there is vast stylized and anecdotal evidence that makes a case for housing as a prescription for poverty. This literature is sizable despite the fact that latest books on removing poverty inside the growing international say little or no explicitly approximately the function of housing. The stop of Poverty with the aid of Jeffrey Sachs (2011), states that most might take delivery of that fact that schools, clinics, roads, power, ports, soil vitamins, clean consuming water; and so on are the fundamental requirements for a life of dignity and health, as well as for financial productivity. Sachs goes directly to delineate the method for ending excessive poverty by using 2025. whilst he mentions key investments in people and in infrastructure, he does no longer explicitly point out housing. The equal can be said of Banerjee and Duflo (2011) and Karlan and Appel (2011). possibly there may be an underlying assumption that housing is important. perhaps, housing is taken into consideration part of the infrastructure that they confer with. Or, possibly the underlying belief is that financial increase will lead to better housing situations. At any fee, a selected consideration of the effect of housing on poverty is not given in these latest books as regards to eradicating poverty on this millennium. this is representative of what changed into located upon reviewing the empirical literature on this trouble. some authors assert that housing loans and finance are needed however do now not offer monetary analysis to returned this claim. as an instance, Bunnarith (2004) in discussing countrywide housing policy in Cambodia asserts that “housing is needed so that humans could have a safe and at ease environment.” there is no discussion in his policy paper of the genuine monetary effect of housing construction or finance on economic increase or poverty reduction. similarly, Habitat for Humanity mainly recognizes that housing is vital to eliminate poverty. In ‘effects of Poverty Housing,’ Habitat for Humanity asserts that the shortage of suitable housing creates hazards at many levels. it's far seen as interfering with a family’s ability to interrupt out of poverty due to the fact so much of the household’s money and time is spent on residence protection and upkeep and now not on meals, health, schooling and income era. due to a lack of appropriate housing, there may be less efficien>GET ANSWER