What is the financial crisis and how did it affect people?
The financial crisis is the period from 2007 to 2008, where the government was unable to lend money to businesses and the public. Frequently, businesses were closed down due to the business not profiting enough money to sustain the business. In some circumstances, this occurred due to being unable to pay back loans they withdrew from a bank to start the business. The financial crisis affected millions of people with poverty. An example of this is when many people became homeless when in debt from loans withdrawn from the bank to buy a house.
Although the financial crisis affected millions of people, more than 19 million people remain without a job. Many people around the world still feel uncomfortable with their savings. And many largely remain cautious about borrowing money.
A man named Stefan explained how the financial crisis affected him negatively and scarred him for life. “I still get panic attacks and nightmares about losing it all over again,” he wrote. “I lost my job at the beginning of the recession (financial crisis). It took two years to bounce back... and three more years to get my trajectory back.”
However, a woman named Jennifer explained how the financial crisis affected her positively. “I can honestly say that the impact that the recession (financial crisis) had on me, personally was life-changing in a positive way,” she wrote. “It forced me to pull myself up by the bootstraps and look in the mirror and ask myself, ‘what do you want; what are you capable of?’ And I found my answer.” These stories show how the financial crisis scarred some and motivated others for the future.
How can we prevent the financial crisis from occurring again?
In my opinion, the most efficient way to prevent the financial crisis from occurring again is to make secure background checks before lending money to the public. The slogan “Give a check before you a cheque” makes background checks easy to remember for bankers. I think that this is the most efficient way to prevent the financial crisis from happening again because it ensures that they are able to repay the loan, which means that the bank doesn't become bankrupt. Another efficient way to prevent the financial crisis from occurring again is to only loan money to people who are using the money for a good reason. For example, when one person wants a loan to buy a watch and someone else needs to loan money to provide a home for their family, the person who needs money to provide a home for their family should receive the loan instead of the other person.
What do you think would be the most efficient way to prevent the financial crisis from occurring again?