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financial crisis Essay Mortgage Loan Financial Crisis Of 2007–2008

 
How to Stop a Financial Crisis from Occurring Again
 
LA 101H
Akshay P Sankaran
In 2008, the United States of America experienced the most devastating financial meltdown it
has seen since the Great Depression nearly a century ago. During this time American families lost more
than 19 trillion dollars, nearly 10% of all the money in the entire world. Stock markets crashed and
banks went bankrupt by the dozen. Thousands of people lost life savings that had been invested in
financial markets. Deeds to houses worth hundreds of thousands of dollars became useless pieces of
paper overnight. People all over the country succumbed to unemployment and were forcibly thrown
out of their homes because businesses wanted to cut costs in order to cover their behinds. There are
several reasons why this happened and they
re not being disputed. The real question that everyone is
askin
g is; could the government have prevented this disaster? And if they could, why didn’t they? Are
the monetary policies that govern our country unable to keep up with the incredible financial innovation
that was seen in the last decade? And now that the policies that are currently in existence have failed so
terribly, how do we change them for the better? That is the question economists all over the country
are trying to answer. The very one I will try to answer.
In order to understand how to prevent a meltdown of this scale from occurring in the future, we
must first understand the factors that caused this one. The Financial Crisis Inquiry Commission was a
ten member commission appointed by Congress to investigate and determine the causes of the financial