Financial Crisis 2008 - Elizabeth Christy Financial Crisis...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Elizabeth Christy Financial Crisis of 2008 December 12 th 2010 Instructor Kevin Camden MBA 510-D2B0 Economics Benedictine University Financial Crisis of 2008 I think we all can sum up the cause of our current economic crisis in one word GREED! In the past years mortgage lenders were happy to lend money to people who couldn’t afford their mortgages, but they did it anyway because there was nothing to lose. Lenders were able to change higher interest rates and make more money on sub-prime loans, if the borrowers default; they simply seized the house and put it back on the market. Houses were selling left and right, which was great because their values would go up every month. Higher house values meant that lenders could lend out even bigger mortgages and it also gave lenders some protection against foreclosures. The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. On the one hand many people are concerned that those responsible for the financial
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Financial Crisis 2008 - Elizabeth Christy Financial Crisis...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online