The 2008 Financial Crisis Analysis

After being in various sociology classes, I dedicate seen the reoccuring theme of greed. The vast inequalities in our nations socioeconomic classes is something that is unavoidable in a capitalistic economy. Our nation is constantly try to grow its wealth, when we extradite, from my interpretation, essentially surpassed our state of maximum growth. I smell that the human frailty of greed has been the main cause screwing the crisis of 2008. The whole history of capitalism has been about financial innovation. When in that respect was a demand problem in the 1980s, credit card game were introduced to boost consumption. I saw this as something that would end up benifiting the upper class. As time went on, financialization has influenced many people to bargain for things they cant undergo. Credit can be a sincere thing as far as expanding business and creating jobs, entirely when greed overrides rationality, you can have a bad property on your hands. I saw all the risky subprime alter as one of the biggest contributers to the crisis. During this time, owe lenders were happy to lend coin to people who couldnt afford their mortgages. Greedy mortgage lenders somehow convinced a great mass of people that they could afford houses too expensive for their paychecks.

Financial companies made money exchange those risky loans, knowing lenders would probally default on them. On hand of that, they passed off the responsibility for those loans on to others in the form of mortgage backed asset securities. Derivatives are one of these exotic assets. In recent years, trickier, riskier derivatives, such as credit default swaps have come about. These credit derivatives let lenders transfer their credit risks or their mortgage defaults to third parties, such as hedge funds which allows banks to do more business. If used properly, derivatives can be genuinely useful, but if they are abused, it can be a disgustful thing. Everything seemed to be going well when houses were selling quickly... If you want to arse around a full essay, order it on our website: Ordercustompaper.com

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