Financial Crisis 2009 Essay - 1371 Words

Financial Crisis 2009 The United States has seen this situation before and survived; but not without change. Any solution to the current financial crisis will need to include the three players; individuals, banks, and the government. All three will also need to be held accountable. Many individuals have stepped beyond their personal means, financial institutions have acted with blatant neglect, and so far the government has in essence stood by and supervised the entire show. Capitalism is the American ideal, but unchecked and immoral capitalism leads to collapse through greed. No solution will be easy and America will suffer regardless of what is done, though some action must be taken. Currently the American people seem†¦show more content†¦There have been many fanciful propositions in this direction. Too much individual funding will lead to false inflation and the central financial institutions have repeatedly proven they will only use any unregulated funding for personal gain, not in the interest of their country. Citigroup repealed many of the regulations set in place to protect the economy on a whole; then proceeded to conduct business without regard for economic stability. Regardless of the status of current assets; the major central institutions are now and have been insolvent. No business or institution in any economy would be allowed to survive as the banks have; not without heavy government protection. Financial institutions of a smaller scale would either be taken by the Fed, or dissolved by the market. Since the central financial institutions are in fact de-facto national banks, this has not occurred. However, I propose these institutions are not too-big-to-fail, on the contrary, they have failed to too great an extent to survive intact. Here is a short summary of homeowner to bank solutions. *This is applicable to private homeowners, thus excluding investment property and commercial. * Homeowners’ who are able to keep their obligations under the following plan will refinance their property with the bank at a realistic rate(ex 4.7%) * 7% of an individuals incomeShow MoreRelatedThe Financial Crisis Of 2007-20091490 Words   |  6 PagesThe financial crisis of 2007-2009 resulted from a variety of external factors and market incentives, in combination with the housing price bubble in the United States. When high levels of bank and consumer leverage appeared, rising consumption caused increasingly risky lending, shown in the laxity in the standard of securities screening and riskier mortgages. 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