Greed brings failure

People all over the world are discussing who and what causes the global financial crisis. Some blame the government, while others blame financial institutions. To me, the global financial crisis happens because of the greedy bankers, the government, and us as consumer. People all around the world are affected by the global financial crisis. It causes many people to face unemployment, business failure, debt, and many other negative impacts. In order to get out of this recession, many rules and system need to be change such as government regulations, the financial institutions system, and us as consumers.

Why blame the government? According to Niall Ferguson, a Harvard and Oxford historian and the author of The Ascent of Money: A Financial History of the World in article “Who’s To blame: Washington or Wall Street”, he says, “My third prime suspect is the congress that wholly failed to supervise Fannie Mae and Freddie Mac, which on the eve of their destruction were leveraged 65 to 1.” It is important that the government realize they need to do a better job monitoring the big corporation and financial institutions. In order to prevent the same disaster, regulations and rules need to be applied. Also, creating a new monitor system is important to ensure big corporations are making the right decision.

On the other hand, banks also play an important role in the global financial crisis. In article “Trading Financial Risk and Job”, it states, “Banks and lending institutions such as
countrywide, Washington Mutual, Fannie Mae, and Freddie Mac adopted the idea of giving sub prime mortgages to people who had no down payments, poor credit, or inadequate regular income”(p.140). Because of the easy loans from banks, people are going over their limits and buying things they can’t afford such as houses and cars. It became a “popular” choice for many Americans to get bank loans when they have the desire of owning something they want, since it’s the easiest and quickest way to get what they want. The bankers show nothing but greed for money. They do not care about anything other than whether they are making profits or not. The bank needs to be monitored by the government and set new regulations. Giving loans to those who can’t afford them and who have bad credit is not going to make their life better. It will negatively affect others all around the world.

In addition, we us consumers are also responsible for the cause of global financial crisis. According to Rachel Tesfahun in “Student Voice: Thanking the Poor Economy”, “I used to be a “consumption whore.” I automatically pulled out my trusty, handy credit card for everything, from a latte at Starbucks to a sale at Macy’s”(p.147). We as consumers have the responsibility to keep track of what we are earning and to what extent can we afford the things we want. Economically, we should not be using credit card if we don’t have the ability to control over desire. Using a credit card and spending money are easy but when it comes to pay back is it going to be just as easy? Consumers are spending money recklessly, which only leads to more debt. We need to realize it’s not a good habit to buy things without thinking of the consequences. In this case, it leads us to finical crisis.

In conclusion, government, finical institutions and us consumers are all responsible for causing the global finical crisis. In order to avoid a further crisis, the government, and finical institutions and corporations needs to work together and establish a monitoring system.
Regulations will help in preventing the same causes. And of course, us as consumers have to be more aware of how to manage money and not spending money recklessly just because the bank offers.


Work Cited
Johnson, June. Global Issues, Local Arguments: Readings for Writing. Second ed. Boston: Longman, 2010. Print.

21, March. "Who's to Blame for the Financial Crisis? - Newsweek." Newsweek - National News, World News, Business, Health, Technology, Entertainment, and More - Newsweek. Web. 02 May 2011. .