Policy Responses during the Great Recession Assignment

Policy Responses during the Great Recession - Assignment ExampleIt is apparent that the amplification in the prices of houses was the major problematic condition of the housing market. This was because the financial institutions wanted to raise funds that would alter them to remain in operation after the economic recession period (USC Price, n.p).The major policy initiatives that were utilize by HUD during the Great Recession era included increase home ownership by keep various programs such as Fannie and Freddie, State HFA, Emergency Homeowners Loan Program and First-time homebuyer Tax Credit among others (USC Price, n.p). The purposes of supporting(a) such initiatives were to exsert financial assistance to the citizens to enable them either buy homes or settle debts. The effectuate were to maintain the circulation of money to avoid inflation and shortage of funds that would affect the economy. This also helped companies to continue to offer their services to homeowners and o ther stakeholders since they had the money to pay their suppliers (USC Price, n.p).One of the policy initiatives that were implemented during the Great Recession was the adit of the HARP and HAMP. For instance, HAMP was designed to assist the homeowners who were suffering from extreme payment burdens. Alternatively, HARP helped in offering easiness for homeowners to earn extra disposal income (USC Price, n.p). This took place through reduction of the interest rates to allow the homeowners deliver some cash for other purposes. One of the problematic conditions was that it only helped a few households, instead of tackling the linguistic universal problem across the country. Another problem was that the government was not running it and relied on lenders in which blase parties jilted it. The major interest groups were the homeowners, lenders and private sector operators (USC Price, n.p). The project did not achieve the expected results because the lenders rejected it since it too k long to materialize. Another ineffectiveness is