What Is The Cause Of The 2008 Financial Crisis

The question of what has been the cause of the ever pressing crises in the world today cannot be simply answered by any one thing. At its current standing point, it seems like the world economy, health and social justice is headed no where good. The rich are getting richer, while the poor get poorer. We are using our resources more and more without preparing for when those run out. Structural unemployment is rising, poverty is increasing and inequality is flourishing as it never has before (Beaudet, 2016). Where these problems come from, what are the problems truly and what we can do to turn it all around is highly debatable. It is important to establish primarily how the economic crises came to be global, as well as distinguish the different …show more content…
Its causes are widely debated and all parties seems to have a different view. Angel Gurría, in an article written on the subject of the crisis, says the foundations of the global crisis were "high levels of market liquidity, low global interest rates, low cost of capital, and very low yields on safe investments" (Gurría, 2008). The problems originated in a very mixed web of global players. Asia had a low global interest rate, the European markets were heavily borrowing from the American markets, and so on (Gurría, 2008). Perhaps the biggest aspect, however, was the incessant mortgage lending in America. American banks were giving loans to people who clearly would not be able to repay them. and this created a “bubble” that was sure to pop (Origins, 2013). The bankruptcy of infamous Lehman Brothers banking caused mass panics and suddenly everybody was on guard for their own protection. No one trusted anyone and loans ceased to be given out, creating even more financial troubles (Origins, 2013). European and Asian markets had been working co-dependently with American markets and evidently, all parties failed (Origins, …show more content…
Fair trade gives fair wages to workers for the work they do as well as protects their rights and safety. This is the first step in bringing people out of systematic poverty. I believe in peaceful, non-violent protesting to show the general publics needs and desired to have a more stable economy. Protest puts pressure on the government to change the policies and regulations they are using that clearly are not working. There is much work to be done, but if we could come together and push for more inclusion, than it is always