The Financial crisis was it necessary or just another way to make money ? Banks have been around for years ,and in the coming foreseeable sure that wont change.Money is

what drives our economy in every way possible.We buy food with it and shelter and buy far it is the safest

way to keep your money.Since we have inflation which means that your money is always becoming less

valuable each year.As you can see from the reports(inflation table refer to table 1).Inflation can happen to

every product whether it's a normal item like a cell phone or a house.This is the main reason why we keep

our money in banks if we just keep our savings on us all the time we would lose money.Banks are the next

best thing along with stocks and bonds …show more content…
People lost their housing ,and some even lost everything they had work so hard for.

The world was in shambles when it happened and it didn't just affect american it affected the

World. As you we have seen in commercials that owning a house is possible for everyone at these low

premiums that they proved.This was one of the most biggest factor in the crisis.So familys ended up taking out loans to have their dream house.

Loans were doled out to “subprime” borrowers with poor credit histories who struggled to repay them. These risky mortgages were passed on to financial engineers at the big banks, who turned them into supposedly low-risk securities by putting large numbers of them together in pools. ( so 1 )

The banks knew that these family would struggle to pay them back and most never did . they still hand them out to .
Where was the goverment to save these familys from being lied to they went ever there they handed it to the banks to control

“Bush's first two Treasury secretaries, for instance, lacked the kind of Wall Street expertise that might have helped them raise red flags about the use of complex financial instruments at the heart of the crisis.”
(So …show more content…
“Many of these loans were also bundled together and formed into new financial instruments called

mortgage-backed securities, which could be sold as (ostensibly) low-risk securities partly because

they were often backed by credit default swaps insurance.” ( 2)

A credit default swap is when the seller of the cds will protect you if your loan.

Since everyone could somehow afford this american dream our housing prices went up aborally

and the bubble was created.Bank were handing out loans that people couldn't afford.”The US

Senate's Levin–Coburn Report concluded that the crisis was the result of "high risk, complex

financial products; undisclosed conflicts of interest; the failure of regulators, the credit rating

agencies, and the market itself to rein in the excesses of Wall Street.”

(2).
Graph ( hoe much money the banks made of this disaster

They ended up deregulation of (+-sub-prime morages) might be used already

‘The FCIC placed significant blame for the crisis on deregulation, reporting: "We