Economics Homework Help

plz watch the video and answer the questions:

this is the first one I need 150 word reply

I believe that the government thought they were doing the right thing. It was scary for many people, I was young when this happened. The housing bubble that burst I know devastated so many people. They were giving out loans like crazy, approving people for too much money and probably should not have been approved. They did this and then people started defaulting. Then businesses started to crash, and the government bailed them out. I believe now this shouldn’t have happened but at the time, I feel like this is the only thing that helped the economy not completely collapse. They gave to many loans and completely screwed them selfs. I believe this kind of investment is good in small doses. But they were doing it on a very large scale, which is what ruined them. And caused this bubble bursting. I feel like this is what is happening again right now.

this is the second one I need reply 150 word

At first, had to do some research to understand more about this concept because there were some things that I didn’t understand. The subprime mortgages were giving this offer to be homeowners to people that had poor and limited credit, but at the same time, there was a negative side in which they would have a charge of low interest and lots of loans that people couldn’t pay back. So that part was the beginning of the great recession. I believe that the government should help companies that are failing because otherwise, it would become even worse for the economy. I do agree that these mortgages are the ones to blame because why would they even do that to people who don’t have a lot of money in their banks? of course, it would be impossible for them to pay the loans. That is what these mortgages companies should’ve thought about this situation. I also had to do some research about the bubble bursting. The bubble bursting is for example that houses market value starts going up and then all of sudden it drops because people can’t be paying those houses and then finances started to collapse. I believe that was not a smart move for the mortgage companies because how could people with poor credit afford to pay for a house?.