The real estate and mortgage meltdown occurred due to a combination of greed and a failure of investors to recognize a real estate bubble that was created by loans that were made available to applicants whose credit did not support the loans they were given. Poor oversight by government entities coupled with blind faith by investors that the market would move ever upward combined to …show more content…
The necessary correction that occurred in the market opened the door for new investors to build wealth, and it opened the door for new families to own their own homes. The meltdown revealed poor lending practices and manipulation of investors by financial institutions, and it allowed for the correction of these problems. Government entities, financial institutions, investors, and consumers have all learned from the mistakes that led to the real estate and mortgage meltdown, and the lessons learned will provide greater benefits than any negative consequences which occurred as a result of the meltdown. As long as no one forgets these lessons, the meltdown that occurred will have been a positive event for the real estate and mortgage