The Financial Crisis-how to prevent it in the future
What was the financial crisis?
The financial Crisis was a series of events caused by money. Bankers were greedy with money and decided to take risks. These risks were performed by loans- loans that could not be paid back. Because of this, people that took loans did not have enough money to return the money so they were evicted from their homes or they would have their possessions removed from them. This resulted in shops having less and less customers as more and more people were losing money and becoming homeless. This became a major issue as a shop without customers would become bankrupt and close down. As you may tell, many many shops went bankrupt which also left banks bankrupt. After this, the financial crisis had to be taken into serious hands- The Bank of England. They had to help other banks by lending them money for no additional cost.
How it could be prevented in the future:
After learning alot about the Financial Crisis, I have come up with multiple ways to prevent it from happening ever again in the future.
The head of banks should set stricter rules for bankers so that they are not too tempted to make the same mistake that was made ten years ago. Some of the rules that could be made are making sure that customers are willing to pay a loan back before the bank begins to lose money. Another idea is that the bankers could check the call lines working a few extra hours at work for security. Secondly, the bankers should be more specific about the consequences of being unable to pay out a loan: repossession, bayliffs ect. Lastly, my final idea to prevent the financial crisis is that the general public should be more cautious about their lending money. This is because if you do knot have knowledge of how much money is in your bank account then you also have no knowledge of whether ypu can pay back a loan or not.
These are my ideas to prevent the financial crisis again.