Financial Meltdown Essay

782 Words Jan 7th, 2014 4 Pages
Kelsey Moore
Monday-Wednesday 11:00
Financial Meltdown It was only a few short years ago that Wall Street came to a halting stop. The world paused and watched as one of the greatest financial crisis of our time took place in front of our very own eyes. While some of us may have not seen this crisis upon us, but downfalls such as the one we experienced aren't built in a day. So we may ask, what could have caused this financial meltdown. According to frontline, "It all started one sunny afternoon in Florida while the employees of JPMorgan conducted meetings on how they can manage and lower risk. They concluded that separating the risk from the loan by credit default swaps would ultimately make the financial system safer for not only them
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After knowing how much sub-prime mortgages played a role in our financial crisis, we can point our fingers in the directions of the bankers who allowed the mortgages to take place knowing the risk they carried. Not only did sub-prime mortgages have a huge impact on this enormous downfall, but so did credit rating agencies."At least one or more of the top 3 nationally recognized rating credit agencies were giving out AAA ratings to loans that had no creditability (Barnett-Hart ) ." These rating were making certain loans safe, when in reality they were nowhere near safe. These loans were filled with fake information from how much one made to what their credit score was. As discussed earlier who was to blame for our crisis, not only does the bank play a huge part into it but so do these nationally ranked credit agencies. Do we believe that something of this sort could happen once again in our future? From past experience we have learned that our nation tends to have crisis in spurts. To say we learned our lesson from this mistake and it won't occur again is a big burden to take. I believe a crisis will indeed strike again,

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