Principles of Finance II Marketing Assignment Paper

There was no greater example of the relationship between financial markets and organizations than with the financial crisis and resulting recession that began in 2008. When the housing market started to crash, so did the financial institutions since they were tied directly with so many mortgages to consumers. This led to the banks failing, the mortgage industry falling apart, and consumers now having less money than ever before. This had a major impact on the organizations because they had fewer customer and sales started to decline majorly during the recession.
The financial crisis was caused by several factors related to investments in real estate. This week, we have discussed a variety of reasons why the financial crisis occurred. Choose one of these reasons and discuss why you believe this reason was at the root of 2008 financial crisis and recession. In addition, discuss what legislation has been enacted to prevent this event from taking place in the future and causing another financial crisis.