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Who To Blame For The Financial Crisis

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The salesmen main aim was to give out as many mortgages as possible in an effort to get the highest possible interest. This is because they were paid depending on the number of loans that they were able to sell to other customers in the outside market. This lead to a practice that could mostly be to blame for the problems that followed. In an effort to sell as many loans as possible, the salesmen were encouraged to target any one that could be a potential customer. The mortgage companies also relaxed their rules to the people that they could lend in an effort to make sure that they capitalized on the booming market.
They intended to lend out as much money as possible in an effort to make sure that they increased their profits from the interests …show more content…

The greed for money by the banks and the financial institutions lead to a situation where most of the people that owed them money could not be able to pay them back in full. The value of the houses also declined and this meant that the assets themselves could not recover the money hence the ethical practices of these institutions are made questionable. The happenings that occurred in the years before the financial crisis are an indication that there was lack of good morals in the business practices. Among the ethics that were broken in this time period …show more content…

Some of the people say the blame should fall on the hands of the companies who gave out mortgages without considering the ability of the people they were giving to be able to pay back. This is seen by some as the main reason for the financial crisis occurring because it was these people that were unable to pay back the mortgages when they became expensive due to the rise in the interest rates.
On another hand, some people blame the government for the financial crisis. They argue that the government should have been able to put in place laws that could curb such acts by the financial institutions. There were no laws that could stop the financial institutions from being able to borrow money and lend to people that were not credit worth. Many argue that if the government had acted faster to bring in regulations to govern the process, then many believe that the crisis could have been prevented

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