How Banks Went Broke A Look Into The Financial Crisis Of...

Lawrence Humes Page 1 4/28/15 Mr. Donnellan Period 1 How Banks Went Broke: A Look Into the Financial Crisis of 2007-2008 At first, nobody foresaw what was about to happen to the economy. The economy at first was at a state of peace and unity. People were taking loans and purchasing houses and these houses were increasing in value. The banks were giving out loans to the people to purchase the houses and earning money on the interest of those loans. That is when people began to notice the advantages of what could be taken from this economic situation. With a new method of earning money quickly and easily, it is no surprise that everybody began to try and use the same methods. Soon enough, the Financial Crisis of 2007-2008 was born into reality. But the real question is, what were the main causes of the 2007-2008 financial collapse? People saw the advantages of this situation. People began to buy houses for their lowest possible prices with their always approved mortgages and would eventually sell them at their high price. The economy at the time has an abundance of house buyers and the value of the hous es were consistently increasing. With that price increasing, there was almost guaranteed profit. But this method of making money was almost too easy. Many people caught glimpse of the chance to strike it rich through this reselling of houses methods. In a blink of an eye, everybody wasShow MoreRelatedHow Banks Went Broke : A Look Into The Financial Crisis Of 2007-20081696 Words   |  7 Pages Lawrence Humes 4/28/15 Mr. Donnellan Period 1 How Banks Went Broke: A Look into the Financial Crisis of 2007-2008 Nobody foresaw what was about to happen to the economy. In the beginning of the 21st Century the economy was at a state of peace and unity. People were taking loans and purchasing houses that they normally couldn’t afford while these houses were increasing in value. The banks were giving out loans to the people to purchase the houses and earning money on the interest ofRead MoreThe Worst Recession Since The Great Depression1347 Words   |  6 Pagesgreatest economic crash of our time, and the worst recession since the Great Depression? Michael Lewis takes us to the very beginning, covering the story of how cynical mortgage brokers and CDO managers were playing fraudulent roulette. A rigged system that was doomed from the beginning but that very well needed every piece to be in place for 2008 to happen. 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Subscription terms are shown on the back cover and details on how to obtain the list of sales agentsRead MoreThe Pursuit Of The American Dream1421 Words   |  6 Pagesis feasible for anyone regardless of their upbringing. It makes the average Joe conceive that the American dream is still alive today and that anything is plausible if an individual perseveres and works hard enough. However, if one takes a moment to look away from Hollywood’s propaganda and rather at the actual issues facing the U.S. today, one realizes that there is a profoundly imbalanced polarization of wealth and power in America. Robert Reich’s documentary Inequality for All covers what is called