What the Financial Crisis actually was.
This financial meltdown not only affected the United Kingdom, it effects globally showing us that when something complicated goes wrong it can cause worldwide chaos. As the 2008 Financial Crisis demonstrated ten years ago it would be disastrous if it were to happen again.
- The Bankers
- The Banker's Bosses
- The Public
When the bankers were given a bonus for making more money for them, this planted a seed in their minds which grew and gave them the idea that if they took risks to try and make more money for the bank they would keep getting these money bonuses. As a result they took these risks and this then caused people to think that this is what started the Financial Crisis.
The Banker's Bosses
As explained previously, the banker's bosses gave the normal banker's the bonus after doing good work for the bank. This could cause people to think that it was the fault of the bosses to try and get the normal bankers to take this risk. However, this was probably just a bonus for doing a good job and the bosses were not hinting for the other bankers to start doing risky things like they did. Moreover, the bankers would have had their own choice as to whether to do this but they are the ones who decided to take the risk.
The reason many people think that this was the general public's fault was the fact that people were getting loans they were not going to be able to repay. As a result of this banks started to lose money and were struggling to survive and in the end many had to close down.
In conclusion, there is still scepticism over whose fault it actually was. However, we know one thing, and that is we never want anything like this to occur in the future.
Now it is up to you, leave a comment as to who you think caused this crisis and why.