The Financial crisis
The financial crisis occurred in 2008, which began in America. Not soon after, it spread all across the globe. The Financial crisis happened due to two reasons. The first reason was the bankers because they were being paid by their bosses, which encouraged them to give people more loans and do more lending. The second reason was that the Bank of England didn’t have strict enough rules. In order to prevent this from happening again there are these three reasons which could stop it:
1) change how the bankers get paid
2) safer lending
3) stricter rules for banks
I strongly believe that the idea of safer lending would definitely stop the financial crisis from happing again. If you want to know why I believe safer lending is the best idea; read on to find out.
I believe the idea of safer lending is the best because the financial crisis happened due to one main reason, which is that the banker wasn’t being safe with who they lend their money to. So if the bankers are safe with the money another financial crisis won’t happen.
Let’s say Tina wanted to buy a car. And Bobby wanted to buy a house. During the financial crisis the bankers would of just gave it them. Were as if they were to be more safe with their money
would check their history. So going back too Tina and Bobby, if I was a banker I would check their history. So I would see if they have paid back loans in the past or if they earn enough money to pay it back.
So I choose safer lending and I hope after reading this you got a better understanding of what happened.