Unethical Banking Practices And The Financial Crisis

A house is not just brick and concrete, but rather a haven with which our lives and our memories are forever connected, but the economic downturn of 2007 reminded us all that this haven should not be taken for granted because it can all go up in smoke in an instant. When the economy collapsed, many qualified individuals lost their jobs, and thereby lost their means for making their monthly mortgage payments, and ultimately ended up losing their homes. The ARM’s that the banks had extended to subprime borrowers ended up crippling and debilitating them even more. What appeared to the banks as smart business ultimately ruined our housing market. Though in retrospect it is clear that a combination of unethical banking practices and a lack of strong regulation were key components to the financial crisis, this was ultimately a black swan event that took us all by surprise. Sure, markets can be reasonably forecasted just like the weather, but there is always a possibility of a storm flying under the radar, unnoticed, until it’s too late, and that is exactly what the financial crisis was. Along with reassessing our banking practices and procedures, we must also work to revitalize our housing market, because it is an integral part of our economy, seeing as how house ownership is a quintessential part of the American dream, and how seven years ago, many saw that dream come crashing down right in front of them. People lost jobs, homes, and even their lives because of this majorShow MoreRelatedThe Financial Crisis Of 20081384 Words   |  6 PagesThe turmoil in the financial markets also known as the financial crisis of 2008 was considered the worst financial crisis since the Great Depression. Many areas of the United States suffered. The housing market plummeted and as a result of that, many evictions occurred, as well as foreclosures and unemployment. 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