The US Housing Market and the Subprime Mortgage Crisis (B): Impact on the US Economy

Case Studies | Case Study in Business, Management, Operations, Strategy, Marketing, Finance, Corporate Governance, Economics, Project Management, Insurence, Free Management Case Study, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BENV015
Case Length : 28 Pages
Period : 2001-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : -
Industry : Financial Services
Countries : USA

To download The US Housing Market and the Subprime Mortgage Crisis (B): Impact on the US Economy case study (Case Code: BENV015) click on the button below, and select the case from the list of available cases:

Business Environment Case Studies | Case Study


Buy With PayPal

Amount to be paid:

Prefer to pay in another currency ?
Select Currency for Payment

Exchange Rates: Click Here
Delivery Details: Click Here


For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Business Environment Case Studies
Case Studies Collection
Business Environment Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

“The Federal Reserve is not currently forecasting a recession.”1

- Ben Bernanke, Chairman of the US Federal Reserve, in January 2008.

“The economy is strong, flexible and dynamic enough to weather this storm.”2

- George W. Bush, President of the United States, in December 2007.

“Housing has been providing a headwind to the economy, and there is a penalty to growth from the current situation in housing.”3

- Robert Steel, the US Treasury Under-Secretary for Domestic Finance, in October 2007.


On March 19, 2008, the United States Federal Reserve4 cut the interest rate (the Federal Funds rate)5 by 75 basis points,6 from 3 percent to 2.25 percent.

The US Federal Reserve said in a statement, “Recent information indicates that the outlook for economic activity has weakened further. Growth in consumer spending has slowed and labor markets have softened.”7 Earlier on January 30, 2008, the Federal Funds rate had been reduced from 3.5 percent to 3 percent.

The interest rate cuts were prompted by fears of an economic recession.

Business Environment Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies

The US Housing Market and the Subprime Mortgage Crisis (B): Impact on the US Economy - Next Page>>

1] “Fed Boss Says 2008 Outlook Worse,”, January 11, 2008.

2] “Bush Details Housing Rescue Plan,”, December 6, 2007.

3] Steve Schifferes, “Credit Woes ‘Need Private Action',”, October 26, 2007.

4] The United States Federal Reserve came into existence in 1913 when President Woodrow Wilson signed the Federal Reserve Act into law. The Federal Reserve serves as the central bank of the US. It supervises and regulates the banking institutions in the country, provides financial services to the US government, depository institutions, and foreign official institutions, and manages the nation's money supply through monetary policy.

5] In the US, banks are required to keep a certain percentage (generally 10 percent) of their demand deposits with the US Federal Reserve. The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions. The federal funds rate is determined by supply-demand considerations; the Federal Reserve sets a target for the funds rate, and seeks to control it by injecting or draining funds from the market through its Trading Desk at the Federal Reserve Bank of New York. (Source:

6] Basis point is one hundredth of a percentage point (0.01 percent).

7] “US Federal Reserve Slashes Interest Rates to Shore up US Economy,”, March 19, 2008.


Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.