The Financial Crisis- who is to blame??


During the financial crisis, people often wondered who was to blame. There were many suspected groups of people but I believe that all of them had something to do with many people losing their money, jobs and houses.

The Individual Bankers: The individual bankers were paid more money (by their boss) for the amount of money they gather from interest and loans. The more money that they were gave back in interest, the more money that was given to the workers. After the workers had learnt this, the majority of them used it to their advantage. They believed that if they sent loans to vulnerable adults who could not pay it back they would get more interest and money from them (by evicting them) and then the worker's boss would pay them a greater amount of money. This was a risk that was not meant to be taken. When a small amount of the general public found out what was going on, they lost their trust in the banks and decided to keep their money else where.

The Government: The government sets strict rules for the bank of England to inform the other banks. The reason that the Government was one of the suspects is because they were not setting strict enough rules for the individual bankers in general which led to the risk that they took. In the rules, there was never a rule that stated sending loans to unprepared citizens. The individual bankers should have used their logic and figured that if they were to take risks like this then they would lose many of their bigger bank accounts. Also, when the Bank Of England was in crisis, the government lent another load of money to them and they were still no where near to back on their feet. The Government (in my opinion) should have set more specific rules for the bankers and other banks and maybe the financial crisis wouldn't of happened. Even though this is a strong opinion, the Government was not all to blame.

The bankers boss': This group of people told their workers that the more interest they earned the more money they would be paid back in return. In my opinion, this was a way of egging them on to take risks. As well as this, they were not telling the workers that they needed to stop giving loans to people that couldn't pay it back which I believe was not a very smart idea. Also, even though the workers were still getting their usual pay, the boss' were offering more and encouraging more to do whatever in their power they could to earn more equity. Though the Government were not specific enough, the bankers and their boss' were still blameable.

The General Public: Finally, to finish my post, the general public were also to blame. The General Public-as unbelievable as it may seem- also caused the financial crisis. The bankers, that sent large loans, caused the vulnerable majority of the public to accept them even though they knew that they could not pay the interest back which led to repossessionor general money loss. After this, the public lost their trust in their banks and decided to keep their money else where. The banks were losing more and more subscriptions until they had too little money. From this, the government paid The Bank of England to give money to other struggling banks. Then, more of The General Public were losing their jobs thus more companies were closing down. Less people could pay their current loans and that is when the financial crisis got out of hand.

Like I said at the start, all of these suspects were for the blame. Comment below who you think did the most damage during the Financial Crisis. ;)

Comments (5)

  • Olivia-Avatar.jpg Olivia @ Topical Talk
    21 Nov 2018

    This is a fantastic post that shows clear and thoughtful reasoning. Well done! I especially like how you have written it because it is easy to understand and I can tell you have taken time to communicate your point clearly (a great storytelling skill). I think this will really help you with your Final piece. A question to help you think ahead: which of the groups that you mention do you think would be easiest to stop from making the same mistakes?

  • Michael-Faraday-logo-250x250.jpg extraordinary_thought | Michael Faraday School | United Kingdom
    21 Nov 2018

    In my opinion I think it was the banks fault (mainly) because they started the problem at first by giving away too much money and if they hadn't the situation wouldn't have occurred. I'm not aware of the reason to this but I'd like to find out why banks had given away too much money in the first place.

    1. Notley-Green-logo-250x250.jpg lovely_sealion | Notley Green Primary School
      extraordinary_thought's comment 11 Jan 2019

      I agree but the banks did not give out the money, they told the bankers that the more loans they sent and the more money they got in interest was the more money that they got paid therefore they took risks to get more money for themselves so I think it was the bankers too : )

  • Notley-Green-logo-250x250.jpg inspirational_attitude | Notley Green Primary School B
    30 Nov 2018

    Well done, fellow friend.

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