【关于金融危机的英语作文60到80词就是写一篇以金融危机为主题的英语作文】
关于金融危机的英语作文
60到80词
就是写一篇以金融危机为主题的英语作文
【关于金融危机的英语作文60到80词就是写一篇以金融危机为主题的英语作文】
关于金融危机的英语作文
60到80词
就是写一篇以金融危机为主题的英语作文
WhatCausedTheFinancialCrisis?
Ithinkwecansumupthecauseofourcurrenteconomiccrisisinoneword—GREED.Overtheyears,mortgagelenderswerehappytolendmoneytopeoplewhocouldn’taffordtheirmortgages.Buttheydiditanywaybecausetherewasnothingtolose.Theselenderswereabletochargehigherinterestratesandmakemoremoneyonsub-primeloans.Iftheborrowersdefault,theysimplyseizedthehouseandputitbackonthemarket.Ontopofthat,theywereabletopasstheriskofftomortgageinsurerorpackagethesemortgagesasmortgage-backedsecurities.Easymoney!
andwhatwentwrongwithourfinancialsystem?Thewholethingwasonebigscheme.Everythingwasgreatwhenhousesweresellinglikehotcakesandtheirvaluesgoupeverymonth.Lendersmadeiteasiertoborrowmoney,andthehigherdemanddroveuphousevalues.Higherhousevaluesmeansthatlenderscouldlendoutevenbiggermortgages,anditalsogavelenderssomeprotectionagainstforeclosures.Allofthistranslatesintomoremoneyforthelenders,insurers,andinvestors.Unfortunately,manyborrowersgotslammedwhentheiradjustablemortgagefinallyadjusted.Whentoomanyofthemcouldn’taffordtomaketheirpayments,itcausestheselenderstosufferfromliquidityissueandtositonmoreforeclosuresthantheycouldsell.Mortgage-backedsecuritiesbecamemoreriskyandworthlesscausinginvestmentfirmslikeLehmanBrotherstosuffer.Moreover,insurerslikeAIGwhoinsuredthesebadmortgagesalsogotintrouble.
Theschemeworkedwell,butitreversescourseandisnowcomingbacktohurteveryonewithavengeance.