The housing market remains below the 50-year growth projections and building permits issued slumped in July and August, with the exception of the construction of single-family homes. With the market continuing to have fits of growth, it may be time to reflect on the events of 2008.
The financial collapse passed its eighth anniversary last month and many remain on the pathway to recovery after the devastation that rolled through the US and world economy. Of the nine individuals referred to the justice department by the Financial Crisis Inquiry Commission for violating security laws, only one has faced penalties and none have been indicted. The events of 2008 left many without homes, stunted real estate development, and dissolved the trust between consumers and the financial sector.
Adding to the distrust, earlier this month Wells Fargo (the institution which absorbed Wachovia during the bailout) reclaimed headlines as subpoenas from federal prosecutors were issued to the bank; a result of nearly 5,300 employees creating false credit card and bank accounts without the consent of its customers.
As housing developments remain below economists’ forecasts, we’ll continue to look to the justice department to serve as a catalyst for renewing trust and faith in the financial systems, which will hopefully, in turn, translate into a market boost to tie out the year. Read more on Senator Elizabeth Warren’s efforts to find justice for those impacted by the collapse and the current market climate.