Macro Forces And The Foreclosure Crisis - 1008 Words

Macro forces affect families in many different ways. Macro forces can affect families’ housing, incomes, businesses, and jobs. Most important, macro forces affect families’ relationships. For example, marriages are destroyed, children are devastated, and friends/families are torn. Because of these macro forces, many families suffered a great deal of losses. In this paper, I will describe some of the few macro forces that families face by discussing the foreclosure in housing, economic crisis, downward social mobility, and the consequences of the Great Recession in the book Diversity in Families and in the article â€Å"Economic Woes =Family Stress†. Macro forces have played a major role in families buying homes. In the article â€Å"Economic Woes =Family Stress,† between 1996 and 2006, the value of Americans’ home doubled. For most families, this was a catastrophe. Some families were afraid that they could not buy a home while others decided they co uld purchase a home. To purchase a home, it was 2  ½ times a person’s annual salary or less (Adrian Coontz, 2008). Home buyers could put down between 10 to 20 percent of cash. For example, a family could buy a home for $450,000 and put down $45,000 to $80,000 if their income was $200,000 and they had good credit. However, if your income was lower and your credit was bad, you may not have received the same deal. As prices continue to rises, many lenders had to come up with ways for a purchaser to buy a home. In 2004, many first time homeShow MoreRelatedbusiness q@a Essay example725 Words   |  3 PagesFramework for Business Review Questions 1. How did the global economic crisis unfold? In 2008 the banking system was on the verge of collapsing. Home foreclosures soared, due to home and personal loans not being paid off. Property and the housing marketing plummeted. Layoffs put more than a million Americans out of work 2. 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