To ‘short’ in finance means a prediction that the investments will go down in future. Alternatively, it is an expert guess and analysis of the possible future decline in the line of investments. In this story, we can see the people of high profile with strong financial base predicting the fall of credit facilities and housing bubble before someone else could do so. They were able to use cognitive skills to determine the situation. However the prediction looked more of a game, but it turned out to be true. The banking industry had seen transformation since 1970 when it was viewed boring. Little activities went on within the banking industry by then but in 1990 's, Lewie Ranieri created some backed up securities. These securities enabled
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They were quick to lend loan to anybody without taking into account whether the person was able to repay the money back (Zheng, 2010). The film ends with the bankers who created an economic crisis not receiving the punishment. Instead, they are apprehended to court and are released with a bailout which they pay using taxpayers ' money. This is a big blow and betrayal to people who were involved and affected by this unfortunate incidence because they expected these firms to be punished adequately. The viewers can learn various lessons on what necessitated the crisis and get more insight on the issue.
Causes of financial crisis reported in 2008
The crisis was one of catastrophic issue that featured in almost all the countries globally. It resulted from the factors discussed below. The banks made the money too …show more content…
There was emergence of mortgage lenders with lower rate loans who catered for the people whose creditworthiness was in question. This was riskier because it fueled more surge in the economy. It was adding more debts to borrowers who were facing problems clearing initial debts with other banks. Companies that had invested in this lost much. Effects of 2008 crisis
The effect affected the manufacturing process. Due to the hard economic time, industries struggled to maintain the production cost.
Many people lost their jobs. It was estimated that around 8 million in the United States lost their jobs during that time.
Most of the people lost their homes. This was because they were unable to service the mortgage loans hence their houses sold by the bank.
There was global economic decline. The effect was felt globally because there was no free trade among the nations hence transferring the
They were quick to lend loan to anybody without taking into account whether the person was able to repay the money back (Zheng, 2010). The film ends with the bankers who created an economic crisis not receiving the punishment. Instead, they are apprehended to court and are released with a bailout which they pay using taxpayers ' money. This is a big blow and betrayal to people who were involved and affected by this unfortunate incidence because they expected these firms to be punished adequately. The viewers can learn various lessons on what necessitated the crisis and get more insight on the issue.
Causes of financial crisis reported in 2008
The crisis was one of catastrophic issue that featured in almost all the countries globally. It resulted from the factors discussed below. The banks made the money too …show more content…
There was emergence of mortgage lenders with lower rate loans who catered for the people whose creditworthiness was in question. This was riskier because it fueled more surge in the economy. It was adding more debts to borrowers who were facing problems clearing initial debts with other banks. Companies that had invested in this lost much. Effects of 2008 crisis
The effect affected the manufacturing process. Due to the hard economic time, industries struggled to maintain the production cost.
Many people lost their jobs. It was estimated that around 8 million in the United States lost their jobs during that time.
Most of the people lost their homes. This was because they were unable to service the mortgage loans hence their houses sold by the bank.
There was global economic decline. The effect was felt globally because there was no free trade among the nations hence transferring the