People who were alive at the time suffered the full effects of the crisis and lost thousands upon thousands of pounds. One of the main reasons why people think the financial crisis was because the banker`s bosses were paying the bankers for taking risks and making more money for their bank. Unfortunately, this meant taking risks and giving people loans who could almost definitely not pay it back. Also another one of the reasons why the financial crisis could have happened is because the Government had not set strict rules for banks meaning that they could do what they wanted no matter how risky. And the last reason why some people believe the financial crisis happened is because the bank was lending to anybody who asked for a loan no matter how big of a loan it was and no matter how much the person who was asking for the loan earned each year this conjecture also links to the second idea.
I chose the second idea as I personally think it is the main reason why the financial crisis happened in the first place. I think this because stricter rules for banks mean that there will be a limit on how much people can at one time. This means that the chance of people not being able to pay back their loans be decreased to zero. This will help people from being in debt and will also help the bank save money too.
The financial crisis started in America in one of their biggest banks, the bank began the crisis by becoming extremely greedy with money so they started giving out loans of hundreds of thousands of dollars to people who earned not even an eighth of the amount. This meant that the person could not pay the bank back resulting in the bank losing money which they were investing in other banks. Yet again, this meant that the bank could not afford to pay other banks which they were investing in. After a long-time the problem had spread all the way from America to England making the financial crisis a world-wide problem for every country world-wide.
It has been proven by many scientists that many people who had money in their bank accounts had lost thousands upon thousands of pounds due to the fact that the bank was taking money (which should have been most people`s savings) and using them to attempt to recover their debt. And that is how the financial crisis got its name and became an infamous disaster