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Arguments in Support of the Claim That It Is Not Wrong to Eat Animals.

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UID: 3035198791 Name: Ho Hei Man Course: CCGL 9030 The Credit Crisis of 2008 1.Introduction
In the fall of 2008, a financial crisis originated from the U.S. resulted in losing trillions wealth, which affected not only U.S. itself, but all over the world. In this paper, I discuss factors leading to the credit crisis in 2008, explain policies that could have prevented it from happening, and state which of the proposed plans for reforming the financial industry would have the best chance of succeeding. The disscussion of this report is mainly based on the HBS report on the financial crisis. 2.Factors led to the credit crisis This section discusses the factors led to the credit crisis. 2.1 Low interest rate Since there was a relatively low interest rate for borrowing money from the US federal reserve because of the US government policy and foreign money from the ‘savings glut’ like China, Japan and Germany flowing to US, it resulted in relaxed credit conditions which banks and home buyers from the US can then borrow money easily. Thus, easy credits fuelled both hosing and credits bubbles. Low interest rates made mortgage payment cheaper, and it drove up the demand for homes, which helped in pushing up the housing prices. As the rapid increase in hosing prices, more and more borrowers to be priced out of the hosing market. Then, the mortgage lenders tended to offer a wide rage of mortgage instruments, which lower the standards of borrowing money, and those mortgages were called ‘subprime mortgages’. It resulted in the falling of the mortgage quality and a hosing bubble was then formed because of the overconfidence on the future growth in prices for home in the U.S. .

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