Financial Crisis


#Money ain't honey

The crisis was a problem which started in 2008 due to three main errors that had happened. One of the errors was bankers were being paid by their bosses which encouraged the bankers to do more lending, loaning money to people who couldn't pay it back and this was the second reason the financial crisis started. The third reason the financial crisis started was because the government didn't set stricter rules. One of the rules that should be set is bosses shouldn't reward a lot of money to the bankers as this would want to make the banker want to earn less because they know they are not going to get as much as they would before. And this will help make a decline in mistakes.

We decided to choose idea 2: safer lending because bankers

were lending, loaning money to random people that don’t know if they will pay it back or not also bankers are not taking care of other people’s money and this is the main cause of the financial crisis. It was mostly the bankers and people's fault because the people were not thinking that before getting a house they would have to responsibly pay a mortgage or their (still need to pay house) would go into foreclosure which means they have failed to pay off their mortgage. Bankers were taking big risks just to get extra bonuses and a possibly more salary. Also to impress their bosses for unnecessary rewards. The reason why we called our slogan #money ain't honey is because bankers and people were thinking that money is infinite and always sweet also brings joy to people but no it just brings trouble to economics so that is why. One of the reasons we chose this idea is because bankers were given out money without checking if they will pay it back not just keep it. And when money runs out in the banks they take money from people's personal saving which leads to people stopping to trust the banks and bankers also they would stop getting loans from them, which was a big impact for the banks and when there was no point to keep the banks open they got shut down as the didn't have enough money to fund the banks.

This should be enforced because it would make banks safer and prevent any future crisis' as this idea is about bankers lending money to people who will pay back their mortgages and loans which will make a profit for the bank which they could use for investing or funding the bank that will improve the bank help shield it from further problems like the financial crisis and keeping money safe. Another reason is our idea would make banks safer; but if the the bankers were to make list of important rules this would be one of the first as this rule/idea provides a great, reliable way to loan and lend money to people. More reasons is this idea will possibly improve people's lives and personal business' also it could make more business' thrive and it could be likely that the business' will be more known and global. Also gives people a chance to get better job because if the business grows it will need more people to work for the owner and boss which is a good opportunity for a new job with a higher salary and less taxes. So those are the reason we want to enforce this idea.

It would be challenging to make this idea happen because bankers might not agree with our idea because they are getting awarded annually but if we reduce how much they are rewarded every year they wouldn’t give their approval and will possibly go on strike because they want more bonuses so that is why it will be challenging to make it happen. Even Though, if we are close to making it happen, bankers would have still been demanding for more bonuses and rewards so that is why it would be a great challenge.The people who will not benefit from this idea is Jennifer Butz as she lotst her hoe, her car and had to pay for a surgery to take out her spleen. She would benefit from this because she couldn`t have a good chance to get a mortgage and loan because if there is safer lending she would not be approval as she failed to pay her mortgage. So she has a small chance because the morgage she could not pay reduced her chance which means she wold miss out. The people would benefit frm this idea is the bosses of banks as they will earn more money and their banks will improve also they could invest some money to their bank. So they will benefit from the idea.

The idea is not for the people who are unlikely to get a loan or mortgage because people who didn`t do anything wrong but are affected, people like Jennifer Butz who was diagnosed with a rare blood disorder and she had to pay for a surgery to remove her spleen which cost a lot of money. Unfortunately her home wasn`t payed off yet because she was still payning her mortgage. Also her car was taken away and she lost her job as a loan officer. Luckily a charity paid for her surgery but nothing was done about the car, her job and house. So it is unfair for people in the same situation.

Their are some questions are. Why at 2008 the financial crisis started? Because how can it be exactly at that time? Also why would bankers take a risk to damage their bank even their economics?

Thanks for reading.

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By super_drawing, easygoing_banana and rational_orange

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