Argumentative Essay: The 2008 Financial Crisis

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I believe that the financial crisis of 2007 was definitely a surprise. In 2001, the financial bubble was created. The financial bubble allowed people to get a loan for their house mortgage even if they could not afford to pay the loan back. The Government thought that the bubble would solve the mortgage loan issues, and as a result, the price of the house after the people were provided that loan increased tremendously. The Financial Bubble not only caused the price of the house to go up, but it also made people go into even more debt, which resulted in them not being able to pay back their loans. If the financial system would have disabled certain types of loans depending on how much money someone made per year, it would have decreased the amount of loans taken by people. In turn, the national debt would have decreased, because most of the loans taken from people would have been paid back because they would be able to afford to pay the loan off. The Financial Services System failed because the banks made too much money from all of the new loans that got created. When a bank creates a loan, they have to make or create the money that they do not have to provide for that loan. Every time a loan got created, more and …show more content…

The first line of the San Francisco Chronicle review of this documentary says: “So basically what happened here is that these bums – these crooks in suits – these educated idiots – these morally depraved criminals – took everybody's money and gambled it every which way, knowing that no matter what happened, they'd get rich and everybody else would suffer. And so the economy caved, and they're still rich, and 30 million people worldwide have lost everything – their homes, their jobs, their place in the community, their vision of the future, their

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