1. The textbook authors put the word “crisis” in quotes because, it was caused by human greed, and that could have been avoided.
2. The 2008 financial crisis hurt both individuals, business and the country in general. According to Ryan Guina’s article on the great recession; the recession was caused by greed! The United States’ economy is built on credit. Credit is a great tool that promotes growth and jobs, and if abused, the outcome can be catastrophic, as witnessed in the 2008 crisis.
- For individuals; they lost the life-savings, i.e. 401k, equity in the homes, etc.
- For businesses, their patronage dropped, accessing loan facility to enable their businesses to survive, became very difficult to come as most financial institutions tightened
2. The 2008 financial crisis hurt both individuals, business and the country in general. According to Ryan Guina’s article on the great recession; the recession was caused by greed! The United States’ economy is built on credit. Credit is a great tool that promotes growth and jobs, and if abused, the outcome can be catastrophic, as witnessed in the 2008 crisis.
- For individuals; they lost the life-savings, i.e. 401k, equity in the homes, etc.
- For businesses, their patronage dropped, accessing loan facility to enable their businesses to survive, became very difficult to come as most financial institutions tightened