This is going to explain about ways lending could be safer and lending is not already safe. The financial crisis is a crisis which started in 2008. the financial crisis was a global crisis which started in america.
my final decision to writre about for my final peice:
Firstly, I shall explain how the bankers are to blame. They are to blame because they were taking to many risks and lending money to people who they know won`t pay it back. Lending for banks is good because we have credit rates (a thing which shows if we are trustworthy to borrow money). Bankers didn’t always check peoples credit rate and lent money to unreliable people but bankers did give lends to trustworthy people.
Credit rates Differences Similarities
Unreliable people Their credit rate is very low They are both getting lends
Trustworthy people Their credit is high They are both getting lends
Lending good or bad
Lending can be good because without lending, people probley wouldn’t be able to buy or rent house because if you were payed £100 a week and the house cost £250,000 instead of using interest rate people would lend what they can’t buy and once they have enough money they will pay it back. Probably by paying month by month along with monthly mortgages bills.
Lending is bad because people try and borrow to much which they know they won`t be able to pay back.
This is a story of Mr Peterson who wanted to buy a house but was only being paid £50 a week but wanted to buy a house for £350,000 he would borrow money but the bank have to check if his credit rate is reliable.
lending is a seriose case